Continental proceeds with refinancing package
Continental AG has completed the first steps of a refinancing package that will improve its capital structure.
"The capital increase is intended to be implemented in the first quarter of 2010," say Continental officials. "Subsequently, the company intends to asses and, if appropriate, implement further measures on the financial markets with a view to further optimize maturity terms.
"Although Continental has done a very good job of reacting to the global crisis, expecially in generating and maintaining liquidity... we still needed to address the maturity in 2010, as well as the financial covenants related to the maturity structure.
"Our overall refinancing concept gives Continental the needed flexibility to emerge strongly from this crisis."