Doncasters receives Court approval for financial restructuring

21 February 2020, Burton upon Trent, UK – Doncasters, the 240-year-old international manufacturing group headquartered in the UK, is pleased to announce the sanction of its Scheme of Arrangement by the English Court today.

Following a Lock-Up agreement in November 2019, the Scheme of Arrangement received overwhelming support from Doncasters’ lenders in a formal vote that attracted 100% approval from first-lien and second-lien lenders.

This is an important milestone in the comprehensive financial restructuring of Doncasters and will result in a Working Capital Facility in excess of £65m to provide ongoing liquidity for the operating group; the removal of approximately £900m of liabilities from the operating group’s balance sheet and an opening net debt figure of approximately £240m; and the transfer of ownership of the operating group, to a new lender-owned holding company.

The financial restructuring is now due to complete during the first week of March 2020. Doncasters’ day-to-day operations will continue without interruption and with no adverse impact on employees, customers and suppliers foreseen.

Jas Sahota, Doncasters’ Chief Executive Officer commented: “My main objectives since joining the Board of Doncasters have been to create a strong financial platform and a simplification of our operations in order for the Group to achieve its full potential in its chosen core markets. Over the past 12 months, as a Board together with the commitment of all our employees and the support of our prospective shareholders, significant progress has been achieved and I’m extremely pleased that we are now in a position to conclude Doncasters’ financial restructuring.”