Pro-Gest, grace period on bond expires: default triggered

Pro Gest Chief Restructuring Officer changes after a few months Turnover

(Telestock) – Pro-Gestthe main Italian paper group which is in a state of financial tension, has communicated that, being after 30 days from the date foreseen for the payment of interest without the payment having taken place, starting from today’s date it must be considered that a “default event“. The reference is to accrued interest on the senior notes of which the bond issue is called “€250,000,000 3.25% Senior Notes due 2024”, which the Company had already announced would not be paid on the payment date (expected to be 15 June 2024).

The company highlighted that Angelo Rodolfi, the new CRO (Chief Restructuring Officer), is supporting Pro-Gest in the Group’s turnaround and relaunch process, and in this context, is bringing continue the dialogue with the main financial creditors with the aim of formulating a proposal to them as soon as possible.

As part of the Group’s overall turnaround process – also the controlled companies Cartiere Villa Lagarina (issuer of the bond loan denominated €90,000,000 Cartiere Villa Lagarina SpA senior secured Notes due 2025), Tolentino (issuer of the €35,000,000 Tolentino SpA senior secured Notes due 2025) and Cartitalia (issuer of the €75,000,000 Senior Secured Floating Rate Notes due 2025) have elected not to pay, as of the interest payment date of June 30, 2024, the accrued interest on their respective Notes.

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