Spanish paper company Lecta moved closer to its restructuring on Friday, as the majority of its bondholders signed a lock-up agreement to swap debt for equity. The deal replaces €600m of 2022 and 2023 notes with new senior and junior notes and equity in the company.
The bondholders will become the new owners of Lecta at the expense of the sponsor, British private equity giant CVC. They will also continue as creditors through two new bond issues.
Lecta has put together a plan to secure about €80m of additional working capital. The plan includes