IFCO reaches agreement on debt-for-equity swap

New York, June 28 - IFCO Systems NV said it reached agreement with an ad hoc committee representing holders of more than 70% of its €200 million 10 5/8% senior subordinated notes due 2010 to exchange the debt for equity.

The €216 million outstanding principal amount of notes plus accrued interest will be exchanged for €216 million of equity, assuming all the securities are exchanged. That means noteholders will own 90% of the equity immediately following the exchange.

Depending on the performance of the company, current shareholders could end up owning 35% of the company after three years from the time the exchange closes or Sept. 30, 2005, whichever is later.

IFCO said the exchange has the support of the Schoeller Group entities that own 45.5% of its outstanding voting stock.

IFCO said the restructuring will put it in a stronger financial position and save €21 million a year of interest expense.

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