European BOPP market leader and CPP film manufacturer Treofan (Raunheim / Germany; www.treofan.com) has taken a step towards securing a substantial financial restructuring, with 86.17% of holders of EUR 170m outstanding senior notes agreeing to tender the notes due in 2013 in exchange for equity in the group. Tenders must be received for at least 95% of the aggregate principal amount of the notes to close the financial restructuring, which will improve the group’s equity and leverage and reduce its future interest burden.

In addition to the debt-for-equity-swap, the plan includes an extension of the maturity of the company’s existing revolving credit facility by one year to July 2011, rearranging financial covenants and a capital injection. The production of financial statements for the 2008 fiscal year has been delayed until the restructuring has closed.

Treofan Group CFO, Wolfgang Posner, said that despite recently improved operational performance key markets remain volatile. He added that the company believes that the planned financial restructuring is an appropriate step in transforming the company into a competitive business. It is continuing to trade as normal while the new capital structure is finalised.