Panels giant Pfleiderer has reached a refinancing agreement with banks and hedge funds on a refinancing deal which will aim to significantly reduce the company’s €914.5m debts.

The agreement is to be approved by boards of individual creditors and Pfleiderer will make a further announcement soon on the details of the restructuring concept and further steps to be taken.

Part of the agreement is Pfleiderer AG will receive further loans of €100m from banks and hedge funds. This will secure the group’s financing while it implements the financial restructuring.

The standstill agreement with the banks, which includes the suspension of regular loan repayments and was initially limited until March 31, is now extended until April 30.

This will give the various parties enough time for the contractual implementation of the key points of the refinancing deal.

“The business development of the group came in above the company’s own expectations at the first two months of 2011,said  chairman Hans Overdiek.

“As a result of the capacity reductions and price increases applied, Pfleiderer has been in the black again in Germany since the beginning of the year.”