DMC posts loss for 2005, reveals financial restructuring plans
31 Mar '06
3 min read
DMC's business activity during the two first months of 2006 is in line with these objectives.
The financial restructuring project received nearly unanimous approval of the shareholders at the extraordinary Shareholders' General Meeting of February 27. This project, which will be implemented during the first half of 2006, includes a capital increase and convertible bond issue for a minimum of €40 million, underwritten by the Group's lenders and its leading shareholder, Pienza International (GPG Group).
When this process is completed, the Group's debt will be reduced from €56 million to €20 million, refinanced by a new bank credit line to be set up prior to the securities market operations.
This restructuring will give the Group the resources it needs to present a balance sheet in equilibrium in the future, and to stimulate the embroidery market.
Dollfus Mieg & Cie (DMC) – The Group's principal activities are the manufacture and distribution of embroidery related products including printed fabrics and threads, handicrafts, and Sportswear, working in partnerships with ready -to-wear brands such as Levi's, VF and Marks & Spencer.
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