Technicolor abandons plan for EUR 300 mln rights issue, seeks new EUR 400 mln financing

Technicolor said that it has been unable to go ahead with its previously announced EUR 300 million rights issue, due to the unprecedented crisis caused by the Covid-19 pandemic. It has instead entered talks with some of its creditors and with third-party investors to obtain a new EUR 400 million financing, indicating that so far it has received indicative offers from one investor and from one of its existing lenders.

The new financing would allow Technicolor to pay off a USD 110 million short-term facility granted by JP Morgan in March, due on 31 July, and finance the liquidity needs of the group beyond July.

The company is seeking agreement from the majority of its creditors to open conciliation proceedings in France, noting that answers from creditors are due by 28 May, unless the company extends this time frame. The appointment of a court-appointed conciliator is intended to facilitate discussions with all stakeholders and the subsequent implementation of the new financing plan.