Solocal Announces Major Step Forward in Financial Restructuring with Key Agreement

Solocal, a leader in digital services for local companies in France, has reached a significant milestone in its financial restructuring process. The company has signed an agreement in principle with Ycor, along with the majority of its creditors and shareholders. This move is a critical step in reducing Solocal's debt and securing its liquidity, paving the way for future growth through strategic synergies. The agreement closely mirrors the terms of the Ycor offer detailed earlier in March 2024.

CEO Cédric Dugardin highlighted the intense negotiations leading to a compromise beneficial for Solocal's stakeholders. Thanks to the agreement, Solocal is primed for a sustainable future, and efforts are now focused on the legal roadmap to finalize the restructuring. During this period, Solocal's team remains dedicated to supporting its clients' digital projects amidst a tough economic landscape.

The restructuring agreement includes a significant equity contribution from Ycor, a partial repayment of Solocal's revolving credit facility debt, and a drastic reduction in its existing gross bond debt. This will result in Ycor taking control of the company, leading to a substantial dilution of current shareholder stakes. The restructuring plan will be subject to shareholder and regulatory approvals in the upcoming months, aiming for full implementation in the third quarter of 2024.