- Update on the discussions with the financial partners of the German subgroup1
Recylex S.A. (Euronext Paris: FR0000120388 - RX) reports today that a new step for current discussions with the financial partners of the German subgroup is needed. Its purpose is to provide them with additional information necessary to examine the terms and conditions under which the financing for the German subgroup would continue to be provided or not beyond December 20, 2019, including the potential sale of Weser-Metall GmbH, the study of which was initiated (without any decision being taken yet at this stage), in order to preserve the continued operation of the Group’s entities.
The Group is also continuing to examine the opportunities for the sale of non-strategic assets (Norzinco GmbH and PPM Pure Metals GmbH)2.
In parallel, the results of the technical studies carried out by Weser-Metall GmbH are being finalized and will be included in the update of assumptions and financial forecasts.
In this context, the German subgroup has requested and obtained from Glencore International AG an extension of the bridge financing3 of up to €7.5 million to cover its identified cash requirements for the period to December 20, 2019.
In addition, the German subgroup has requested and obtained:
- From Glencore International AG the extension to December 20, 2019 of the maturity date of the bridge financing granted in February 2019 and extended to date for a total amount of €40.7 million) as well as of the additional financing of €16.0 million granted in July 2019, which were due on November 30, 2019;
- From its financial partners the postponement to December 20, 2019 of their rights of early termination (currently set on 30 November 2019) under the existing financing obtained in December 2016, as well as the postponement to the same date of repayments due on December 31, 2018, March 31, 2019, June 30, 2019 and September 30, 2019 for a total amount of €8.0 million.
The pursuit after December 20, 2019 of the German subgroup’s operations, and consequently those of Recylex S.A. (Weser-Metall GmbH being its main customer), is contingent upon the extension, beyond December 20, 2019, of the maturity dates set forth above and the securing of an additional financing, the principle and conditions of which are currently discussed between all parties .
Recylex will keep investors informed of the situation and the position of the German subgroup’s financial partners.
- Update on the financial situation3
As at November 27, 2019:
- The German subgroup's net debt amounted to €143.9 million, compared with €138.6 million on October 18, 2019. This increase is mainly due to the drawdown on the bridge financing extended in November 20194.
- The parent company Recylex S.A.'s net debt amounted to €45.7 million, compared with €43.9 million on October 18, 2019. This change is mainly due to the deterioration in the net cash position (€7.3 million at November 27, 2019 compared with €9.1 million at October 18, 2019)5.
- The Group's consolidated net debt amounted to €170.4 million compared with €162.5 million at October 18, 2019.
1 See in particular the press releases of 5 December 2018, 26 March 2019, 17 June 2019, 15 July 2019 and 31 July 2019, 28 October 2019
and 7 November 2019.
2 See the press release dated 24 April 2019.
3 See the press release dated 28 October 2019.
4 See the press release dated 7 November 2019.
5 See Note 2.7 of the notes to the parent company financial statements at 31 December 2017.
Disclaimer: This press release is a non-official translation into English of the press release of the same date issued in French language and is provided solely for the convenience of English-speaking users. This press release should be read in conjunction with and construed in accordance with French law.