Pfleiderer signs standstill agreement with its banks

Dec 22, 2010. /Lesprom Network/. Pfleiderer AG is receiving support from its lending banks with its restructuring process. As a first step, the company has signed a standstill agreement with its banks in this context, which is valid until March 31, 2011. All lending banks have agreed to this standstill. As part of this standstill the banks have agreed to the suspension of the contractual amortization until March 31, 2011, as the company said in a press release received by Lesprom Network. Furthermore, they have also agreed not to exercise any right to terminate their credit lines due within this time period. Until March, Pfleiderer will develop an overall concept to allow it to undertake the required restructuring work and to have funds available to make investments in key growth markets. “The standstill agreement is a vote of confidence by the banks in our restructuring process, and all the more so since their approval was unanimous,” stated Hans Overdiek, Chairman of the Executive Board of Pfleiderer AG. “ Pfleiderer has had to cope with a decline in revenue due to the world-wide financial crisis and is suffering from excess capacity in its core business in Western Europe and North America. The restructuring plan will include an overall concept for the further development of the company’s business including a reorganization of its financing. Pfleiderer Group is one of the worldwide leading manufacturers of engineered wood, surface finished products and laminate flooring.