Hardware and home equipment retailer Merkur has managed to strike a liquidity deal with creditor banks under which the struggling company will be exempt from paying its financial obligations to banks until the end of the year. The company is also looking for strategic partner.
The deal with banks is to bring even better effects than a liquidity loan would, because more cash flow will be directed to balancing the inventories, and consequently, boosting sales, the company said in a release on Thursday.
"The overall effect of the freezing of payment of financial obligations will amount to EUR 10m in 2013," said the company, which originally wanted to secure a 16m loan to ensure liquidity.
The 2010 financial restructuring plan for the company, which is being sold, envisaged that Merkur will get EUR 63m in loans, but so far it has managed to get only EUR 42m.
Due to the lack of fresh loans, the company's liquidity reached a critical point at the beginning of 2013.
Merkur's management is also negotiating with creditor banks and leasing companies, which have become the biggest owners of Merkur through debt restructuring, on the possible entry of a strategic partner.
