Frigoglass S.A.I.C. (the “Company”) has reached an agreement in principle, subject to agreement on detailed terms and documentation, with its key stakeholders, including its largest shareholder, an ad-hoc committee representing holders of Frigoglass’ €250 million 8.25% Senior Notes due 2018, and Frigoglass’ core lending banks, on the key parameters that will underpin the restructuring of the group’s capital structure. The Company is aiming to enter into the legal documentation required to implement the capital restructuring as soon as is practicable. Once implemented, the capital restructuring transaction is expected to result in a significant reduction in indebtedness and interest expense, extensions of maturities together with the provision of substantial new financing (in part through an equity injection from Frigoglass’ largest shareholder) which will support the Company’s liquidity and business plan, with the aim of creating a stable and long-term capital structure.
The Company expects to enter into a final term sheet shortly. Once a detailed term sheet is agreed the Company will announce further details of the capital restructuring.
Nikos Mamoulis, Chief Executive Officer of Frigoglass, commented, “The agreement in principle reached among the main stakeholders is a critical milestone for Frigoglass. Our focus now is to agree the final documentation and commence implementation as soon as possible. I would like to take this opportunity to thank our suppliers, customers and lenders for their trust and support as well as our employees for their commitment to our Company.”
