French steel pipemaker Vallourec reaches deal with creditors
- The deal, which reduces its debt by 1.8 billion euros ($2.16 billion), has "been entered into by the company and a group of lenders representing together 65.1% of the total amount of the company's financial debt"
PARIS: Vallourec has reached an agreement in principle on financial restructuring with its main creditors, the French steel pipemaker said on Wednesday.
It has filed a request with the commercial court of Nanterre, in greater Paris, for the opening of safeguard proceedings, the company said in a statement.
The deal, which reduces its debt by 1.8 billion euros ($2.16 billion), has "been entered into by the company and a group of lenders representing together 65.1% of the total amount of the company's financial debt", Vallourec said.
The loss-making company, who abandoned an 800 million euro capital increase last year due to a pandemic-induced fall in oil prices, opened talks with its creditors in November to convert a little more than half of its 3.5 billion euros debt into equity.
"The agreement in principle has been approved unanimously by the members of the company's supervisory board," Vallourec said.
It said reference shareholders Bpifrance Participations and Nippon Steel Corporation had confirmed their support for the agreement.
Comments
Comments are closed for this article.