Lecta secures lockup deal to advance US$468M debt restructuring

SPAIN – Spain-based specialty paper manufacturer Lecta has signed a lockup agreement with key financial stakeholders, paving the way for a major recapitalization that will reshape the company’s capital structure and support its ongoing transformation.

The deal formally commits participating creditors to backing Lecta’s proposed restructuring, which is expected to reduce its debt load by approximately €400 million (US$468.4m) and strengthen liquidity across its operating units.

Under the recapitalization plan, Lecta’s net leverage ratio is projected to drop to below 3× on a pro forma basis.

The agreement also includes provisions for up to €100 million (US$116.79m) in new financing earmarked for the company’s specialities division, enabling operational adjustments and supporting working capital needs.

The specialities unit, central to Lecta’s shift toward higher-value, innovation-driven product lines, is a key pillar in the company’s growth strategy.

CEO Gilles Van Nieuwenhuyzen called the lockup agreement a “significant milestone,” emphasizing that a more sustainable capital structure will provide stability during the next phase of the company’s transformation.

“The significantly de-levered capital structure and new liquidity will provide Lecta with a stable financial footing to facilitate the group’s ongoing transformation process and enable the management team to focus on delivering best-in-class paper products to our customers and cost competitiveness,” he said.

The restructuring is also expected to reduce cash interest expenses and improve cash flow, strengthening the group’s financial resilience.

Additionally, the recapitalization aims to complete Lecta’s transition to a model in which each business unit, coated papers, uncoated specialties, and metallized products, is managed and financed independently.

As part of the lockup terms, Lecta will receive €20 million (US$23.36m) in interim liquidity from participating stakeholders.

This short-term financing is designed to support operational continuity as the company works toward completing the recapitalization, targeted for closure by the first quarter of 2026.

Lecta chairman Javier Abad Marturet said the agreement demonstrates strong stakeholder confidence.

“This milestone represents an important step toward securing a sustainable, long-term solution for the group. We look forward to working closely with our stakeholders to support execution of the group’s strategy and unlock its full potential,” he said.

Lecta has continued expanding its sustainable product portfolio amid the restructuring process. Last month, the company launched Metalvac Ice Cream, a recyclable metallized paper designed for ice cream and frozen food packaging.

The 123-gsm grade material provides an alternative to traditional laminate structures and is compatible with standard industrial packing lines, aligning with European demand for recyclable flexible packaging solutions.

The restructuring comes at a critical time for Europe’s paper and flexible packaging sector, which continues to face high energy costs, regulatory pressures, and intensifying competition from international suppliers.

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