Lecta Group obtains all necessary conditions for implementation of recapitalization
July 13, 2020
LONDON (News release) -- Lecta Group announces that all necessary conditions precedent required for the implementation of Recapitalization have been obtained and it is expected that the Recapitalization Effective Date will be 16 July 2020.
The Company welcomes this positive development and is confident that following the Recapitalization the Company will emerge with a solid liquidity position and healthy balance sheet. In particular, the Company considers that the Recapitalization will significantly improve the Group's liquidity profile, reduce the Group's net leverage and increase the Group's flexibility.
As further described in the Investor Pack, completion of the Recapitalization is subject to the satisfaction of various conditions precedent on or prior to the Long-Stop Date. Following discussions with various stakeholders, including the Underwriters, the Long-Stop Date under both the Implementation Agreement and the Lock-Up Agreement was extended, with the consent of the requisite majorities, from 30 June 2020 to 28 July 2020 to grant the Company additional time to secure the relevant confirmations, acknowledgements and consents required for implementation of the Recapitalization.