HERIGE announces today that the Group has obtained a €50 million State-guaranteed loan (Prêt Garanti par l’État – PGE) from its historic banking partners, demonstrating their full confidence in the Group’s ability to rebound following the epidemic.
The loan, guaranteed up to 90% by the French State as part of its PGE scheme (French government orders dated March 23, 2020 and April 17, 2020 granting the State guarantee to credit institutions and finance companies pursuant to Article 6 of French law No. 2020-289 of March 23, 2020), has an initial term of one year.
The financing supplements a series of measures taken over the last few weeks, including deferring non-strategic investments and extending – in accordance with the law – loan repayment schedules, as well as deciding not to distribute any dividend from 2019 earnings. Combined with a strictly managed cost saving plan, the loan strengthens the Group’s liquidity position, supported by the gradual – and generally earlier than anticipated – resumption of all its activities.
With the gradual reopening of its Building Materials Trading points of sale since March 24 and its Concrete and Joinery plants since March 25 and April 14, respectively, the Group has organized its operations to responsively meet the needs of building professionals.
The Group is aiming to balance its cash position by the end of the year.
With an upturn in activity and a consolidated financial structure, the Group is confident in its ability to limit the impact of the epidemic.
NEXT PUBLICATION: Q2 2020 turnover on July 28, 2020 (after the close of trading)
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