The loan now has a term until the end of September 2023 and now amounts to a maximum of CHF 178m, with the option of a two-year extension.
The interim report published by Hochdorf Holding Ltd described the extension of the company’s syndicated loan as of October 31, 2019 and the successful implementation of restructuring measures as significant uncertainties for the continued existence of the company. This financing has now been secured.
The company said work is continuing on focusing on its Baby Care and Dairy Ingredients divisions. Among other developments, negotiations are currently ongoing regarding the sale of the foreign subsidiaries and individual business units.
Hochdorf said the baby care business in emerging markets continues to perform below expectations and business has fallen dramatically at subsidiary Pharmalys Laboratories SA. In addition, further technical challenges have arisen in the operation of the new spray tower line.
As a result of this, and as previously detailed in the interim report, significantly higher value adjustments must be expected at the end of the year with a corresponding negative impact on the company result.