Banks express confidence in OYSTAR

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The OYSTAR Group has achieved a far-reaching agreement with its banks for further financing of the corporate group. As one of the world’s leading providers of packaging technologies, OYSTAR will now be in a position to master the current financial crisis and reorganize itself again for the future. Thus under the leadership of the new CEO Tom Graf, management at OYSTAR has succeeded in providing the company with a solid structural and financial foundation in a matter of only four months.

“Shareholders, banks and staff thus express their complete confidence in the future of the Group, in management and in the restructuring concept that has already been introduced and referred to as the ‘ONE’ program,” underscored OYSTAR CEO Tom Graf in Stutensee near Karlsruhe, the Group’s principal place of business. “The agreement that has been reached provides us with the support that we need. OYSTAR now has the time and money to complete the required reorganization of the Group and to set the necessary course for the period there after.”

As a result of the worldwide recession the OYSTAR Group has suffered an approximate 15% decline in sales over the past twelve months. Although OYSTAR continued to do relatively well in comparison to the rest of the German mechanical engineering industry, reorganization of the company’s financing nevertheless became necessary. This has now been achieved through intensive negotiations. The new agreement ensures that the company will be able to rely on long-term financing.

The agreement with the company’s respective banks provides for contributions from all of the parties involved. For example, the shareholders Odewald & Cie. will make more than EUR 20 million in additional equity capital available. Furthermore, the respective banks will grant a respite on interest and amortization payments into the year 2011. And, not least of all, the company’s staff have also declared their willingness to make a contribution toward restructuring. “OYSTAR staff have thus made a crucial contribution toward the restructuring of our corporate group,” stressed Graf. “This high measure of responsibility and confidence demonstrates that the spirit of partnership between management and labour at OYSTAR continues to function even in a crisis.”

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