Ailing steel scrap recycler Scholz has reportedly made "significant progress" in its search for new investors. A comprehensive due diligence exercise has resulted in offers from two potential investors, the German firm announced today in London. The Scholz management board is currently in the process of granting exclusivity to one potential purchaser. The company hopes this "final stage" of its investor process will lead to a "significant deleveraging" of its group debt as well as "a substantial injection of fresh liquidity to support business growth".
Among other measures, the plan would encompass the restructuring of Scholz's corporate bond, which is governed by Austrian law. Negotiations with the court-appointed curator for the bondholders have been started, the company reports. The group management board’s intention remains "to achieve a financial restructuring of Scholz Holding GmbH with all of its lenders on a consensual basis". The implementation of the concept could be realised over the coming weeks, Scholz adds.