SPAIN (From news reports) -- Lecta and key stakeholders have entered a lockup agreement that commits parties to supporting a recapitalization of the company.

The agreement provides the necessary support for Lecta to move forward with its debt restructuring plans.

Under the recapitalization, the company is expected to reduce its debt burden by approximately €400m ($468.4m).

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 recapitalization.

"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 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 recapitalization, 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."