October 23, 2018
Negotiations between the office equipment supplier’s creditors and those of its proposed buyer, Staples Solutions, have collapsed.
As a result of the breakdown in talks, the company’s shares have plunged by 27.5 percent, with shares losing 83 percent of their value since the beginning of 2018.
Staples Solutions, a subsidiary of Cerberus, previously launched a non-binding offer for the company, in the process also acquiring its outstanding debts.
Yet, given the lack of agreement and the restructuring process, the Adveo group has decided to avail itself of the protection mechanism provided for in Article 5bis of the Bankruptcy Law with the aim of reaching an agreement to refinance its debt.
This decision, agreed unanimously by the Board of Directors, will not alter the activity of the company, which will continue with its operations, Adveo informed the National Securities Market Commission (CNMV) yesterday.
Article 5bis grants a period of three months plus an additional one to reach an agreement.
Adveo, which tripled its losses in the semester to €18.3 million ($21 million), understood that the operation of Cerberus could solve “permanently” the problem of structural debt that the group carries and would contribute “to build a leading group in Europe.”
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