Frozen food giant Findus Group, which operates as Young’s Seafood in the United Kingdom and Findus in continental Europe and Scandinavia, is in the process of renegotiating its debt burden with its syndicate of lenders, a source close to the process said.
As part of this process, Lion has put in €20 million ($26.3 million) in equity and will shortly be making a restructuring proposal to its banking group, the source told IntraFish.
The equity injection was necessary for Lion keep it afloat and avoid losing it all together, banking sector sources said.
“It is highly unlikely that a sale can be forced, but not 100 percent,” said the source close to the company.
If the business keeps under-performing, Lion could have to take some urgent action -- such as some kind of debt equity swap, or even have to sell some businesses -- in order to de-leverage, financial sector sources said.
The company is believed to have breached its December covenant, sources said.
