INTERWOOD-TIMBER TRADING S.A. announces the signing of a contract for the sale of a second property it owns, for a total price of €5.2 million, as part of the implementation of its strategic plan for financial restructuring and strengthening its capital structure.
Of the total transaction price, €5 million will be used to reduce the company’s bank debt, while the remaining amount will cover expenses related to the completion of the transaction and the relocation of operations.
This development follows the agreement to sell the company’s first property, for which a preliminary agreement has already been signed, and the transaction is expected to be completed in the near future. This transaction is expected to generate €3 million, of which €2 million will be used to reduce bank debt and €1 million for investments in the modernization and upgrading of the company’s infrastructure.
At the same time, the company is proceeding with its planned share capital increase, which will strengthen working capital while simultaneously capitalizing the existing bond loan, further bolstering the company’s equity.
Upon completion of the above actions, INTERWOOD-XYLEMPORIA is expected to have achieved:
- a total reduction in bank debt of €7 million,
- strengthening of liquidity and equity through the capitalization of the bond loan,
- the implementation of €1 million in investments in the company’s production infrastructure.
These actions, combined with the recent bank loan refinancing agreement, constitute a comprehensive financial restructuring program that substantially reduces leverage, improves the company’s capital structure, and creates a stronger foundation for financing its growth strategy.
The Management of INTERWOOD-XYLEMPORIA remains committed to the full implementation of its strategic plan, with the aim of creating a stronger, more competitive, and financially sound company, for the benefit of its shareholders, employees, customers, and partners.