World News
Smurfit Kappa wins extension to credit agreement
Paper-based packaging multinational Smurfit Kappa Group (SKG) has received consent from its lenders to extend the terms of its credit agreement.
SKG revealed that Deutsche Bank, which acts as an agent for SKG's lenders, received consent to the proposed amendments to its senior credit facility.
"However, the final deadline for lenders to accept the proposed amendments is June 30, so the changes cannot be put in place until after that," said a company spokesman.
It follows the group's proposal, earlier this month, to extend a portion of the group's EUR 600m revolving credit facility by one year to December 2013.
Doing so will lengthen the company's term of its debt and give it greater financial flexibility in the coming years.
The completion of the amendment process is subject to the execution of the Amended and Restated Senior Friendly Agreement.
SKG operates across 22 European countries and nine in Latin America. Its share price fell 0.27% to EUR 3.70 this morning.
