PRESS RELEASE
New Financial Recovery Plan for the MAILLIS GROUP
Conclusion of the final agreement for the Group's financial restructuring
Athens, 27th June 2014 – M. J. MAILLIS S.A. announces that, following the approval of the Company Board of Directors that was convened on June 26th 2014, a Restructuring Agreement was executed (“the Agreement”) with the Group of participating Lenders and the HIG Luxembourg Holdings 46 Sarl Investor (“the Strategic Investor”), who has significant experience and know-how in the restructuring of companies.
By the new financial restructuring, the Group enters into a new era of sustainable growth and is expected to make better use of its resources and technological leadership.
The main terms of the Agreement, which create the conditions for a substantial recovery and for the continuation of the Group's activity, are the following:
- The transfer of the existing Lenders' shares, to the Strategic Investor.
- The capitalization of 100% of the convertible bonds (with current value of approximately €96,3 million) and of 50% of the Senior bonds (with current value of €69,4 million), for achieving an equivalent reduction of the Company's debt.
- The improvement of the main terms of the two existing ordinary bond loans, the Senior Bond Program and Super Senior Program, such as, extension of the repayment schedule and reduction of the applicable interest rate, that will cause a substantial decrease of the related financial cost, on an annual basis.
- The further support of the Company's liquidity, by the issue of new bond loan of ten million (€10.000.000), for working capital financing.
The Agreement further provides for the delisting of the Company's shares, from the ATHEX, following the submission of a mandatory takeover bid by the Strategic Investor, for the acquisition of all remaining shares and the exercise of a squeeze-out right, according to the applicable law.
It is noted that the Agreement does not foresee relocation of Company's headquarters or production facilities, outside Greece.
It is anticipated that all the above will be implemented within the coming months, according to the applicable law and regulatory framework, when new respective announcements of the Company will be made.
Business Prospects
By virtue of the Agreement, the second phase of the financial restructuring is completed, through which, the debt is decreased by 60% and in general, the Group's financial position is improved.
The international financial crisis of recent years had an extremely negative impact on the Group's activities, before other Greek companies, due to the Group's intense exporting activity, resulting in the urgent need of enhancing its financial position, which, in part, was achieved through the first phase of the restructuring, in September 2011.
The implementation of the second phase gives a permanent solution to the problem of over leverage, as well as, to the capital adequacy of the Group, so that the Company, in conjunction with its operational expenses' reduction and productivity improvement plans, sets the grounds for its further development maintaining its seat and its operational base in Greece.
Corporate Profile of the M.J. Maillis Group
The M.J. Maillis Group is a leader in the secondary industrial packaging, providing its clients globally with complete, high technology and cost effective packaging solutions (one-stop-shopping) that combine packaging equipment, packaging materials, service and support. The Group employs 1,458 people and maintains physical presence in 18 countries in Europe, North America and Asia, while its products are sold in more than 80 countries worldwide. The Group's customer base covers many industrial sectors, such as the food and beverage, aluminum, steel, construction, timber and bailing industries. The Group is the exclusive or preferred global supplier to an increasing number of major industrial and consumer products multinationals such as US Steel, Nestlé, Coca-Cola, P&G, Henkel, Pepsi, Mars, Lafarge, ArcelorMittal, Corus, Walmart, etc. The shares of the M.J. Maillis Group are listed on the Athens Stock Exchange under the ticker symbol "MAIK".
For more information please contact
Company Contact:
Group's Investor Relations Department
Tel. +30-210-6285-000
E-mail investor.relations@maillis.gr