DECEUNINCK
Long term framework agreement reached with lenders / Loans restructuring / EUR 85m capital increase / Sales fall 25% in first quarter of 2009
Plastics profile manufacturer Deceuninck (Hooglede-Gits / Belgium; www.deceuninck.com) has reached a long term framework agreement with its lenders on the restructuring of its loans. The company said in March 2009 that it was negotiating with its major shareholders (banks with which the company has loans and US and British institutional investors who hold loan notes issued by Deceuninck) on financial restructuring – see Plasteurope.com of 16.03.2009.
The agreement covers an overall refinancing of existing loans with banks in one single loan agreement for a period of four years and an amendment to the conditions of the loan notes including an extension of the term of the loan notes to five years.
Further progress has also been made on the capital increase announced in December 2008 – see Plasteurope.com of 10.12.2008. The company’s balance sheet will be strengthened through a public share issue of around EUR 85m supported by two core shareholders and ING Belgium, KBC Securities, and Dexia Bank België banks. The capital increase, with preferential subscription rights for existing shareholders, is likely to take place during the third quarter of 2009. The company said that it intends to hold an extraordinary general meeting during the framework of the capital increase.
In an interim financial statement issued in May 2009, Deceuninck reported first quarter sales of EUR 102m (EUR 107m at constant exchange rates), down from EUR 137m in the same period of 2008. It said that the decrease was less marked than expected. In Europe, which accounts for 76% of sales, revenue fell by 23%, with France and the Benelux countries proving the most resilient with falls of 8% in the period. Eastern Europe saw revenue fall by 39%. In the US and Turkey, sales in euros fell by 28% and 31% respectively.
The company said that a long cold spell had affected sales in the early part of 2009 but that since March order books in most regions have been filling up. This had led to the discontinuation of seasonal unemployment schemes at most sites, giving “cause for hope” and an indication of a slight slowdown in the fall in demand. Deceuninck expects sales in the second and third quarters of 2009 to be substantially below last year’s levels and said there are no signs pointing to an improvement in demand after the third quarter.
The agreement covers an overall refinancing of existing loans with banks in one single loan agreement for a period of four years and an amendment to the conditions of the loan notes including an extension of the term of the loan notes to five years.
Further progress has also been made on the capital increase announced in December 2008 – see Plasteurope.com of 10.12.2008. The company’s balance sheet will be strengthened through a public share issue of around EUR 85m supported by two core shareholders and ING Belgium, KBC Securities, and Dexia Bank België banks. The capital increase, with preferential subscription rights for existing shareholders, is likely to take place during the third quarter of 2009. The company said that it intends to hold an extraordinary general meeting during the framework of the capital increase.
In an interim financial statement issued in May 2009, Deceuninck reported first quarter sales of EUR 102m (EUR 107m at constant exchange rates), down from EUR 137m in the same period of 2008. It said that the decrease was less marked than expected. In Europe, which accounts for 76% of sales, revenue fell by 23%, with France and the Benelux countries proving the most resilient with falls of 8% in the period. Eastern Europe saw revenue fall by 39%. In the US and Turkey, sales in euros fell by 28% and 31% respectively.
The company said that a long cold spell had affected sales in the early part of 2009 but that since March order books in most regions have been filling up. This had led to the discontinuation of seasonal unemployment schemes at most sites, giving “cause for hope” and an indication of a slight slowdown in the fall in demand. Deceuninck expects sales in the second and third quarters of 2009 to be substantially below last year’s levels and said there are no signs pointing to an improvement in demand after the third quarter.
27.05.2009 Plasteurope.com [213489]
Published on 27.05.2009
German version of this article...