In the form of a so-called posting, Pfleiderer AG has sent the preliminary agreements for the Group’s financial restructuring to its creditors. These draft contracts are based on intensive negotiations between Pfleiderer AG and its creditors’ negotiating committee, which continued until shortly before the posting.
It is planned that the creditors will waive their claim to a part of their financial receivables (excluding the Eastern Europe financing group) equal to 40% of the respective utilised credit lines, plus part of the accrued interest and fees.
The executive board and the supervisory board will recommend to the shareholders at an extraordinary shareholders’ meeting, which will probably be held in the second half of July 2011, that a massive capital reduction be carried out in a magnitude that will result in the shareholders holding only approximately 1% of Pfleiderer’s shares after the other capital changes.
In order to regain a sound equity base, a capital increase will then be carried out against cash contributions in which funds of up to €100m are to be raised. Of that total, €60m is to be contributed by the creditors and €40m is to be contributed by the shareholders of Pfleiderer AG or by other third parties.
When the capital increase is completed, the creditors are to hold at least 80% of the increased share capital of Pfleiderer AG.
Those creditors that waive 40% of their receivables but do not wish to participate in the capital increase will receive bonds with warrants that can be converted into shares under certain conditions.
