Praktiker is again creditworthy

Praktiker, a German DIY retail group that has run into trouble, is to receive a credit to finance its restructuring. A private equity group advised by Semper Constantia, an Austrian private bank, is providing a secured loan in the amount of € 40 mio. The company has also been given binding promises from a financial institution for a further € 20 mio. Consequently the group’s line of credit valued at € 40 mio is being extended to three years and the trade credit insurers are prepared to support the restructuring process through appropriate limits on credit. What is more, it is expected that another loan of € 15 mio will be agreed. Originally Praktiker had been negotiating a loan with an international investment company. The present solution is perceptibly more favourable.