Cuisine de France and Otis Spunkmeyer owner Aryzta has said that it has received 'unanimous consent' from its lenders to amend the group's banking facilities.
In a statement, the bakery firm said 'Further to its announcement of 11 September 2018, Aryzta has received the unanimous consent of its lenders to amend its existing Facilities Agreement and has now signed definitive documentation amending the Facilities Agreement'.
The group will welcome the news as it seeks to press ahead with a planned fund raising plan, as part of which it is seeking to raise around €800 million, to ease its debt burden.
Last month, the Swiss-Irish baker announced that it is looking to raise the millions of equity capital to help it pay its debts after a rough 2018.
At the time the group reportedly had debts amounting to €1.6 billion after the company has seen its share price plummet since the start of the year, clearing almost €200 million off its value.
“A significantly improved capital structure will provide Aryzta with the means to continue to take the necessary steps to re-position the business and deliver on our strategy,” said CEO, Kevin Toland in a statement in August.
“Over the medium-term, we expect to generate significant cash flow which will be applied towards continued net debt reduction and to resource selective growth opportunities.”
Capital Increase Block
However, Swiss investor Gregor Joos has sought to block the capital increase, saying that the group should focus its attention on selling its assets and simplifying its management structure.
In a letter to Aryzta chairman Gary McGann, Joos called for the sale of the group's North American operation as well as its 49% stake in French frozen foods retailer Picard, Bloomberg reported.
"What the activist is doing can be very dangerous for Aryzta, because it can start a squabble at a company that's already battered and fighting for survival," Bloomberg reported Patrik Schwendimann, an analyst at Zuercher Kantonalbank, as saying.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.