DGAP-News: KION Group receives lenders' consent for covenant reset

2009-09-17

KION Group receives lenders' consent for covenant reset

  • Broad support from lenders
  • Shareholders provide additional Euro 100 mill

Wiesbaden, 17 September 2009 - KION Group - a global leader in the material handling equipment industry - has received approval for an amendment of covenants, which the company had proposed to its lenders. KION Group's proposal was a prudent step to ensure the company's ongoing compliance with its covenants even in a business environment affected by the ongoing deterioration of the global demand for forklift and warehouse trucks.

Significantly more than the required two third majority of lenders voted in favour of the company's proposal. The amendments are now being documented with the agent UniCredit / HVB. To underline their strong support, KION Group's shareholders - funds managed by KKR and Goldman Sachs Capital Partners - are providing the company with additional funds of Euro 100 mill.

'The broad support from our lenders clearly reflects their strong trust in the quality of our business. We are pleased to have achieved this good result, which gives us the flexibility to continue managing the business for the benefit of customers, employees, shareholders and lenders. We are pleased that lenders and shareholders have strongly supported us during the discussions during the past weeks', said Harald Pinger, CFO of KION Group. 'Lenders' support is an important basis for our future success.'

'We have started as early as last autumn to prepare for the most severe crisis in the history of our industry. Since the beginning of this year as part of a revised business plan we have been implementing a broad set of measures, which keeps the company on its successful track', Gordon Riske, CEO of KION Group added. 'With lenders' support KION now has all prerequisites to continue to execute its proven growth strategy and fully exploit business opportunities. KION will make use of this crisis to further strengthen its global position.'

 

The Company

The KION Group, with its Linde, STILL, OM and Baoli brands, is Europe's market leader in industrial trucks, the global number two in the industry and the leading international supplier in China. The KION Group employed over 21,000 people and generated revenue of around EUR4.6 billion in the 2008 financial year.

For further information please contact:

Michael Hauger
Head of Communications and Investor Relations
Tel.: +49 (0)611 770 655
Email: michael.hauger@kiongroup.com

Frank Kopfinger
Head of Investor Relations
Tel.: +49 (0)611 770 220
Email: frank.kopfinger@kiongroup.com

Contact

Contact

Michael Hauger

Senior Vice President Corporate Communications

Contact

Frank Grodzki

Senior Director Corporate External Communications & Group Newsroom

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