Lending Banks Support Pfleiderer Restructuring

Neumarkt, Germany, Dec. 22, 2010 -- Pfleiderer AG said it is receiving support from its lending banks with its restructuring process.

As a first step, the company said it has signed a standstill agreement with its banks, which is valid until March 31. Pfleiderer said its lending banks have agreed to the suspension of the contractual amortization until then.

In addition, Pfleiderer said, the banks have also agreed not to exercise any right to terminate their credit lines due within this time period.

"The standstill agreement is a vote of confidence by the banks in our restructuring process, and all the more so since their approval was unanimous," said Hans Overdiek, chairman of Pfleiderer's executive board.

Pfleiderer said declining revenues along with excess capacity in its core business in Western Europe and North America have created challenges for the company.