CPL CONCORDIA closes debt restructuring agreement

Concordia sulla Secchia (MO), 26 April 2017 - CPL CONCORDIA, a cooperative multi-utility group operating in the energy and gas sector, with a consolidated turnover of approximately €300 million, announces the signing by the parent company and other subsidiaries of a bank debt restructuring agreement with 36 credit institutions. The repaid financial debt amounts to approximately € 160 million, while the total value of the transaction, including lines that can be used for the issuance of guarantees and a non-recourse factoring ceiling, amounts to almost €250 million .

The intervention of the lenders does not provide for any write-off of the debt but only for the extension and rescheduling until 31 December 2023 of the existing cash exposure, at favourable rates for the companies of the CPL CONCORDIA Group.

The agreement reached with the lending banks is based on the business and financial plan for the period 2016-2023, subject to an "Independent Business Review" by Roland Berger and certified by Dr. Franco Carlo Papa as an independent expert pursuant to and for the purposes of art. 67 third paragraph L.F. This plan is aimed at restoring a situation of sustainable economic and financial equilibrium through a process of industrial reorganization already started in recent months, which provides for a progressive increase in profitability thanks to the focus on higher value-added activities and the efficiency of the cost structure, as well as a selected process of divestment of some non-core activities and shareholdings.

The Cooperative, which at the same time as the conclusion of the recovery agreement with the banking system strengthened its capital base through the issuance of €10.5 million of Cooperative Participation Shares entirely subscribed by financial institutions and cooperative companies belonging to Legacoop, as well as by the "Cassa di Risparmio di Mirandola" Foundation, had requested a moratorium on the banking system in June 2015 as a result of the events that had affected the previous top management; As a result of these events, the a thorough and rigorous reorganization of the company's operating and governance model, which is particularly appreciated by lenders during the negotiation phases of the transaction.

CPL CONCORDIA expects to close 2016 with a significant improvement in Ebitda to sales margin compared to previous years, noting the first important positive signs of the ongoing process.

Also from an employment point of view, the Company shows signs of a reversal of the trend: to date, 1,161 units are employed, an increase compared to 1,151 as of 31/12/2016. On 31/12/2014, before the crisis that hit the Cooperative, there were 1,351 units occupied.

CPL CONCORDIA was assisted by "Pirola Corporate Finance" as financial advisor and by "Latham & Watkins" as legal advisor, while the lending banks were assisted by "Zulli Tabanelli e Associati" (financial advisor) and "DLA Piper" (legal advisor).