Eroski Reaches Agreement with Banks to Restructure Debt

Spanish retailer Eroski has reached an agreement with its main financial creditors to restructure it…

Spanish retailer Eroski has reached an agreement with its main financial creditors to restructure its debt of €2.6 billion by 2019. The deal demonstrates that the banks fully support the company’s business model and clarifies the company's financial situation for the next few years.

The agreement was signed with the eight main financial entities that account for over 85 per cent of the company’s bank debt and has also been shared with the other entities that make up Eroski's banking pool.

Eroski’s new financial structure provides a sustainable solution for the next few years and is in line with the company’s ability to generate recurrently positive EBITDA, which has held up well at around €250-300 million per year, in spite of the recession and the drop-off in consumption.

Eroski president Agustín Markaide considers the refinancing agreement a very positive development, saying that it, “represents the start of a new phase for the cooperative, which will be able to take on the challenges defined in its strategic plan with its financial needs covered”.

Markaide added, “the restructuring of our liabilities enables us to focus on our core activity, our distribution business, to consolidate progress towards the new Eroski that will provide greater satisfaction for our consumers, creditors, employees, society in general and the partners in the Group.”