(CercleFinance.com) – Solocal Group is continuing its financial restructuring process with the examination of two offers, each proposing a massive reduction in the group’s debt and an injection of liquidity.
The first offer comes from bondholders and provides for a liquidity contribution exclusively in debt. The second offer comes from the company Ycor and combines contributions exclusively in capital and industrial synergies.
‘The Company supports Ycor’s offer, the only proposal, at this stage, likely to ensure its sustainability and which can be implemented with the support of senior lenders (RCF)’ indicates management.
Solocal Group will formally consult the Single General Meeting of bondholders on the implementation of Ycor’s offer via the modification of the current safeguard plan.
‘ Ycor’s offer, in addition to proposing a substantial reduction in debt, the weight of which had become overwhelming and securing the Group’s liquidity, should allow Solocal to benefit from the solutions and expertise developed by this player for several years and to generate synergies in a short time horizon,” declared Cédric Dugardin, Managing Director of Solocal.
‘If the offer is finally accepted, Ycor would thus become the majority shareholder of the group which would logically have to undertake a new strategy and reorganization of the group. It will hold 76% of the capital,” indicates Oddo BHF.
‘It is likely that the group will be delisted given the dilution of existing shareholders (ultimately 1% of capital). An OPR would be entirely possible in our opinion,” adds the analysis office.