Worst-Performing German Stock Wields an Unusual Tool for Reboot
- Automotive cabling supplier Leoni weighs a sale of receivables
- More steps needed as lenders hire law firm for debt accords
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Leoni AG, a 450-year-old company that traces its roots to precious-metal threads for embroidery, is seeking salvation through an unusual modern financing tool.
The worst performing stock among major companies in Germany in the last year, Leoni is considering an audacious refinancing package, in part by preparing to sell about 200 million euros ($220 million) worth of receivables. It’s a transaction known as factoring that would let it pay back a 170-million-euro Schuldschein, or promissory note, due in March. Leoni is also renegotiating parts of its gigantic order book to try and pass on rising labor costs to customers.