Schefenacker refinancing agreed
Date: Thursday 3rd May, 2007
Author: Chris Laughton
Profile: Chris Laughton
Schefenacker reports that its bondholders have agreed today, at a company voluntary arrangement meeting, to take:
- EUR 7.5 million cash;
- 5% of the equity; and
- warrants that could raise the equity to 15%.
The shareholder, Dr Alfred Schefenacker, retains 25% of the equity but has contributed:
- EUR 20 million of new money;
- his personal equity in the Engelmann subsidiary; and
- the cancellation of EUR 100 million of shareholder loans.
Senior creditors now hold 70% of the equity.
The success of the migration now depends on the operational restructuring that Stephen Taylor has been managing during the last few months of stakeholder negotiations - he claims "a solid first quarter performance".
Please note that the opinions expressed in this blog represent the views of the author and not the views of Mercer & Hole.