Irish packaging group Smurfit Kappa said today a proposal to ease the terms of its credit deals had received the support of enough of its lenders to go ahead.
Smurfit Kappa said earlier this month the amendments would allow it to raise longer-dated capital to refinance a portion of its debt, extend the maturity and give it increased headroom on its covenants.
“By the 'early bird' deadline of 25th June 2009, Deutsche Bank, as agent for the lenders, had received consents to the proposed amendments to SKG's senior credit facility in excess of the required acceptance level,” it said.
The company, one of the world's biggest makers of paper and cardboard packaging, said on June 9th it had a strong liquidity position with in excess of €700 million of cash on its balance sheet and no significant debt refinancing requirement until the end of 2013.
It said it was operating well within its covenants.
Reuters