Penta Investments (Penta), the Central European Investment Group is pleased to announce that it has contributed to the successful debt restructuring of Pampus Industriebeteiligungen GmbH & Co (Pampus Group). The largest operating company of the Group is WDI (Westfälische Draht Industrie), the leading steel wire producer in Germany and in Europe. The total volume of Pampus Group financial liabilities had reached EUR 350 million and its restructuring has been considered to be inevitable for making Group´s business sustainable.
In 2011 Penta became one of Pampus Group largest creditors by acquiring bank liabilities from existing banks. Penta intended to invest into the group and to manage the restructuring, following Penta´s successful track record in similar cases, such as the restructuring of Drumet in Poland. During the process, Penta became the largest creditor of Pampus Group and enabled the group to restructure.
Together with 7 banks, Penta agreed to decrease the banking debt of EUR 350 million significantly by a number of measures like debt swaps, haircuts, assets sales and others. Other Group liabilities in a volume of EUR 120 million were restructured alongside.
WDI now has a sustainable balance sheet and Penta has transferred its interest in WDI to the other lenders and will focus on enhancing the value of other remaining group entities of Pampus Group.
The financial advisors on Penta´s side were Herter&Co. The legal advisers were Weil Gotshal & Manges (Frankfurt).