27 November 2019, Burton Upon Trent, UK Doncasters Group Limited (“DGL” or the Group) is pleased to announce it has entered into a lock-up agreement with a significant majority of its first lien and second lien lenders to implement a financial restructuring.
The subsequent financial restructuring will enable a major recapitalisation of the business, with DGL’s operating subsidiaries benefiting from a sizeable reduction to its bank debt, and provision of new liquidity facilities to support the Group’s strategy. Ownership of the Group will as part of the financial restructuring transfer to the Group’s senior lenders upon legal completion, which is expected during Q1 2020.
The agreement marks an important further step in the implementation of the Group’s strategy; the creation of a robust business with an unrelenting focus on its world-class precision casting and superalloys operations. This strategic direction has been supported by the successful disposal of a number of non-core operations during 2018 and 2019.
Commenting on entering into the lock-up agreement Jas Sahota, CEO of DGL, said: “This is a significant positive development for Doncasters, our people, customers and suppliers. The agreement we have reached with our lenders will provide the necessary stable platform for DGL to deliver on its future strategy.”
The agreement remains subject to the completion of final long-form documentation and certain other conditions in the normal course of transaction closing, including regulatory clearances and an English Scheme of Arrangement, which is expected to be launched during December in order to implement the financial restructuring.
Doncasters disposals in 2019 have been:
- USA Fabrications division – completed 10 January 2019
- Doncasters SETTAS, Belgium – completed 30 September 2019
- UK Fabrications division, Sheffield and Shrewsbury, UK – completed 18 November 2019
- Doncasters Blaenavon, Pontypool, UK – completed 18 November 2019
- Doncasters Precision Forgings, Sheffield, UK – completed 26 November 2019
All for undisclosed amounts.