Spain-based Lecta and key stakeholders have entered a lockup agreement that commits parties to supporting a recapitalisation of the company.
The agreement provides the necessary support for Lecta to move forward with its debt restructuring plans.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the recapitalisation, the company is expected to reduce its debt burden by approximately €400m ($468.4m).
This would bring the company’s net leverage ratio to below 3× on a pro forma basis and also includes provisions for up to €100m in new financing dedicated to the specialities unit.
These funds are designated for operational changes and working capital needs within that unit.
Lecta CEO Gilles Van Nieuwenhuyzen said: “We are very pleased that Lecta now has the support from its key financial stakeholders to move towards implementation of the recapitalisation.
“The significantly de-levered capital structure and new liquidity will provide Lecta with a stable financial footing to facilitate the group’s ongoing transformation process and enable the management team to focus on delivering best-in-class paper products to our customers and cost competitiveness.”
Lecta expects the measures to cut cash interest expenses and improve cash flow.
The recapitalisation is also intended to finalise the group’s transition into a structure where business units are managed and financed independently.
The lockup agreement enables Lecta to obtain €20m in interim liquidity from stakeholders while the broader restructuring takes place.
The interim financing is anticipated to support operations as the company works towards closing the recapitalisation, which is expected by the first quarter of 2026.
Lecta chairman Javier Abad Marturet commented: “We are grateful for the continued support of our key stakeholders and their strong commitment to Lecta.
“This milestone represents an important step toward securing a sustainable, long-term solution for the group. We look forward to working closely with our stakeholders to support execution of the group’s strategy and unlock its full potential.”
Last month, Lecta introduced Metalvac Ice Cream, a recyclable metallised paper designed for use in flexible packaging for ice cream and frozen foods.
