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DUKE&KAY HAS IMPLEMENTED THE RESTRUCTURING PLAN OF A COMPANY IN THE PACKAGING SECTOR AND LED THE BUSINESS BACK TO A PERFORMING STATUS

Situation

The company with 30M€ turnover is a leader in the world of packaging. The company manufactures tubes for cosmetic, oral hygiene, pharmaceutical and food industry products.

Because of the recession, the Group (controlling the Company) suffered a decrease of sales volumes from 60M€ to 50M€ and the EBITDA from 6M€ to 3M€ in about 3 years.

Despite the positive margins of the most recent years and the art. 67 agreement (Italian bankruptcy law), set with the Banks, the Company poor cash flow created huge overdue payments towards suppliers, the tax authorities and the social security institutions.

Duke&Kay activity

Due to the lack of liquidity, the company was unable to cope with the full payment of overdue items exposing itself to the risk of actions by creditors. The Company asked Duke&Kay to implement a restructuring plan to rebalance the financial structure, to guide the reorganization of the production activities, to manage the disposal of non-strategic assets, the restructuring of the short-term debt exposure and the acquisition of new financial resources.

The restructuring plan included:

  • To definitively discharge the remaining Group companies, providing them with a balanced and sustainable financial structure in the long term;
  • To allow the full relaunch of the Italian manufacturing plant operating in the aluminum and plastic tubes sector.
Results

To date, all deadlines and covenants have been duly honored.

The company, despite COVID situation, in 2020 performed better than 2019 (growth approx. + 2-3%). Profitability (EBITDA) constantly increased up to 10% of turnover.

Duke&Kay is actually looking for a potential partner to support new investments (to further increase profitability), and to allow the Company exit from Art. 67 of the bankruptcy law.

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