The supermarket chain DIA reported yesterday that it has agreed with most of its creditors to extend the deadline to meet the conditions that will allow activating the agreement reached with them until July 19, when initially the deadline expired on the 15th.
In a statement sent to the National Securities Market Commission (CNMV), the company has assured that it is “working” together with the financial entities to achieve it and that it hopes to reach a solution “no later” this Friday.
In the agreement closed with the creditors on June 25, three conditions were established, including that DIA received at least 490 million euros “via capital increase or participative loan”, an injection that it promised to provide – or where appropriate advance – its maximum shareholder, the Russian tycoon Mikhail Fridman, in the framework of his takeover of the company.
In addition, it also requires the delivery of documentation and that DIA “has obtained binding commitments” to cover the line of financing to suppliers with an amount between 70.8 and 80 million euros.
In the case of not meeting these requirements, the agreement reached with the creditors runs the risk of being cancelled.
In addition, the group needs to receive the 490 million in these coming days, since on July 22 a line of bonds for an amount of 306 million euros, whose payment depends on this operation, expires.
The final agreement with the creditors includes a total injection of 871 million euros for DIA and allows the extension of the maturity of all of its debt until March 31, 2023.
Fridman -the owner of 69.76% of the firm through the company LetterOne- and financial institutions reached a principle of agreement on May 20 to avoid “in extremis” that the company was docked to the pre-bankruptcy of creditors.
The signing of the final document was scheduled for before June 15, although it also had to be extended the deadline as it has now happened.