The CEO of Ingra, Igor Oppenheim, reported that the Management Board and the Supervisory Board propose to the Ingra Assembly a financial restructuring in two steps, the first being a reduction of the share capital, and the second a recapitalization by converting the claims of Ingra’s creditors into equity stakes.
Ingra aims to resolve part of its debts to suppliers, holders of commercial papers, and bondholders by the end of the year, says Oppenheim. According to him, the value of Ingra’s bonds is 200 million kuna, the value of securities is 83 million kuna, and the claims of suppliers that would be included in the recapitalization amount to 53 million kuna. According to the proposal of the Management Board and the Supervisory Board, the share capital of Ingra would first be reduced from 300 million kuna to 150 million kuna at the assembly in the second half of December, whereby the share capital is reduced by transferring the funds obtained from the reduction to capital reserves, without payment to shareholders.
Subsequently, the share capital would be increased from 150 million kuna to 450 million kuna, by investing rights and issuing new shares. In other words, Ingra’s creditors would have the option to convert their claims into equity stakes. If all creditors to whom Ingra’s offer applies accept the offer and become new shareholders, they would hold two-thirds of the equity stake, says Oppenheim. With the implementation of the proposed measures, Ingra’s balance sheet would be healthier, and the company would find it easier to conclude and finance new business deals, believes the CEO of Ingra.
