Rath AG Announces Transformation Agreement with Creditors

Rath Aktiengesellschaft has reached an agreement with key financial creditors to initiate a transformation program. This agreement involves adjusting and extending current financing arrangements until the end of 2029. The financing terms will include higher interest rates, additional fees, and the requirement for substantial collateral. Furthermore, ongoing principal repayments will be suspended until December 2029.

As part of the transformation, Rath AG plans to reorganize its European production network by 2028. The production site in Meißen, Germany, will be closed, with operations relocated to Krummnußbaum, Austria, and Owensville, USA. Employees will be offered positions at the Bennewitz site in Germany. Similarly, the Budapest site will close, transitioning most production capacity to Krummnußbaum and Bennewitz, aiming to enhance efficiency and cost structure.