Review by Christos T. Panagopoulos
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 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 42 million euros. Due to the lack of fresh loans, Merkur’s liquidity reached a critical point at the beginning of 2013.
Source: Slovenia Times