German decorative surfacing manufacturer Surteco Group SE has reached an agreement with its banks on a long-term funding deal until December 28, 2029.
Surteco says the agreement, also made with the majority of promissory note holders, allows the extension of the current financing, ensuring a stable and sustainable financing framework.
The April 20 announcement followed an earlier notification by the company in January in which the Surteco Management Board, in consultation with the Supervisory Board, said it had made the fundamental decision to examine the strategic options for the future of the Group.
This included exploring the possibility of selling the Profiles and Edgebands business units. The January announcement had been made in response to rumours about the business.
Surteco reported at the end of 2025 “surprisingly dramatically weak sales revenues” due to persistently weak demand, particularly in Europe and the USA.
Surteco has now agreed with banks and promissory note holders on measures to strengthen its financial position, earnings, and liquidity by 2029. The company has agreed to suspend dividend payments during the restructuring period. and to maintain an agreed minimum liquidity threshold in addition to the existing covenants.
As collateral, first-ranking share pledges have been provided for the creditors of the syndicated loan, and second-ranking share pledges for selected subsidiaries of the debtor have been provided for the promissory note creditors.
“The decision regarding a potential sale of the Profiles and/or Edgebands divisions will be made by the Company’s governing bodies in accordance with their fiduciary duties,” Surteco said.
“The Management Board plans to use any proceeds from the sale to reduce financial liabilities.”
The company emphasised that any decision regarding a divestment will be made solely at the Company’s discretion.
In connection with the process, the Company has commissioned an expert opinion in accordance with the IDW S6 standard. It is based on the current Group structure, without considering any potential divestments, and indicates the company’s ability to continue as a going concern.
In fiscal year 2025, Surteco achieved a revenue of €821.2m and adjusted EBITDA of €80.2m Based on preliminary figures, Surteco started fiscal year 2026 on a positive note, with revenue of €208.4m and adjusted EBITDA of €26.7m. The adjusted EBITDA margin (adjusted EBITDA/revenue) increased from 12% in the first quarter of 2025 to 12.8% in Q1, 2026.
Surteco manufactures printed decor papers, release papers, decorative surface films, and edgebands based on specialty papers and plastics. Its range also extends to plastic skirting boards, technical profiles for industrial applications, roller shutter systems, and coated fabrics.
