Belgium-based multinational Greenyard says that it is in "full swing" to implement its plan to transform the organization, having received support from its banks.
The company says its relationship banks "consent to a 15-month covenant waiver period in parallel to the execution of the Transformation Plan, divestments and additional capital increase".
Greenyard faced a tough 2018, with extremely dry summer weather, a recall at the beginning of the summer, and continuing market pressure, which according to CEO Hein Deprez had called for "important decisions" to be made.
The Transformation Plan will involve the company consolidating and using its "strength and scale to become an even closer partner to our customers", the company said.
"Greenyard has recently shared its Transformation Plan and revised Business Plan with its relationship banks," it said in a statement. "The combination of both plans forms the basis for the recovery of the company. By entering into the consent agreement, the banks support a successful transformation of Greenyard into a healthier and stronger organisation over the coming years."
"This agreement allows Greenyard the time, calm and liquidity to implement the Transformation Plan, conditional upon realising the various transformation results, the divestment of non-core assets in a timely and diligent manner, the identification of a cornerstone investor that supports a subsequent additional capital raise, as well as the exploration of a sale of its Prepared division."
A combination of Adjusted REBITDA growth with new money coming from disposals and a capital increase is expected to secure the intended deleveraging to a Net Debt to Adjusted REBITDA ratio below 3,0x over the coming three years.