Conti completes first steps toward financial restructuring

ERJ staff report (DS)

Hannover, Germany -- Continental said it has completed the intial phase of a financial restructuring.

It said in a statement that it has amended the existing loan agreements, allowing for the repayment of the tranche of €3500 million due in August 2010 by a forward start facility (FSF) which should provide more flexibility . The company has received commitments in excess of the requested €2500 million in the FSF, the international automotive supplier announced after the signing of the related loan agreements in Hanover on Saturday.

The next step, said the company, is to raise a further euro 1000 milllion as the balance of the debt payments, by August next year. The statement implied that new capital would be raised in the markets, rather than by selling off assets, such as the rubber group.

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Press release from Conti