Essity Receives Demand for Early Repayment of Bonds
Essity has recently encountered a situation where a small group of bondholders has requested early repayment for bonds that are set to mature in the years 2029, 2030, and 2031. The company is currently disputing this demand, asserting that it is unfounded and lacks basis in the terms outlined in their bond agreements.
Details Surrounding the Demand
The demand for early repayment pertains to a minority portion of the overall bonds currently issued by Essity. The bondholders involved are claiming that there has been an Event of Default according to the terms detailed in the bond documents. However, Essity maintains that it has sought professional guidance confirming that no such Event of Default has occurred, and believes strongly that the bonds remain secure.
Bondholder Concerns
While the claims from these bondholders may evoke concern, it’s important to note that they represent only a fraction of the total bond issuance. Essity is committed to protecting the interests of all stakeholders, and they are actively working to resolve this matter efficiently and fairly.
Company’s Position on the Matter
Essity is steadfast in its position regarding the current situation. The company feels confident about the legal standing of its bonds and is prepared to contest any claims made by the bondholders. The management is closely monitoring the situation and engaging with legal advisors to navigate the complexities that have arisen from this demand.
Continuous Communication
Essity aims to maintain transparency during this process, and stakeholders are encouraged to remain informed as the situation evolves. Essity’s leadership is fully aware of the potential impacts these developments might have on investor confidence and is thus devoted to providing regular updates.
Contact Information for Media Inquiries
For more information or further inquiries, individuals can reach out to the company’s media relations team. Karl Stoltz, the Media Relations Director, is available for comment. Additionally, Per Lorentz and Sandra Åberg, Vice Presidents of Corporate Communications and Investor Relations, can provide insights as needed.
Frequently Asked Questions
What is the nature of the demand made by bondholders?
The demand involves early repayment requests for bonds maturing in 2029, 2030, and 2031, with claims of an Event of Default.
How is Essity responding to the demand?
Essity disputes the claims made by the bondholders and is confident that no default has occurred.
Who can be contacted for more information about this matter?
Inquiries can be directed to Karl Stoltz, Media Relations Director, or to the Vice Presidents of Corporate Communications and Investor Relations.
What implications does this demand have for Essity?
Essity aims to manage the situation effectively to ensure stakeholder confidence is upheld while protecting their financial interests.
How are the claims being evaluated?
Essity is receiving professional advice and is consulting with legal teams to evaluate and respond to the claims systematically.
