Kapsch TrafficCom Secures Restructuring Agreement with Creditors

Kapsch TrafficCom AG has reached a crucial agreement with its major financial creditors on key restructuring terms. The company has negotiated a standstill agreement and a binding term sheet. This serves as the foundation for a comprehensive restructuring set to last until March 31, 2028. An important aspect of the agreement includes the tight financing terms. Ongoing principal repayments will be suspended through the specified period. In exchange, Kapsch TrafficCom has pledged early repayments from excess cash and extraordinary inflows while suspending dividend distributions.

Additionally, Kapsch TrafficCom is implementing cost-saving and efficiency measures. There are plans to divest some assets and explore ways to enhance its capital base. To oversee the restructuring process, the company intends to appoint Markus Richter as Chief Financial Officer, counting on his expertise for essential guidance.