Reno De Medici S.p.A. has decided not to proceed with the payment of interest accrued on its Euro 600 million Floating Rate Senior Secured Notes due 2029 for the 16 March 2026 interest payment date, in order to enhance the group's liquidity position amid a complex macroeconomic and geopolitical environment, according to Reno De Medici.
The company has entered into a forbearance agreement with holders of more than 70% of the principal amount of the notes. The agreement prevents these holders from taking enforcement action related to the non-payment until the completion of the recapitalisation or 15 June 2026, whichever is earlier.
The decision reflects the challenging market backdrop facing the European paper industry, which has undergone a period of profound structural change. The contraction in paper demand in the post-Covid period, combined with widespread excess production capacity across the continent, has created a particularly challenging market environment for all industry participants.
The group's operations will continue normally, with no disruption to production and deliveries. Discussions and negotiations regarding the terms of the recapitalisation are continuing in a constructive and timely manner.
