S&T agrees refinancing deal, sells non-core subsidiaries

S&T, provider of consulting, outsourcing, systems integration and IT services in Central and Eastern Europe as well as in the German speaking region, has agreed a refinancing package with banks that secures the group’s future. The package includes the bonds originally due in 2011, the deferral of interest and the provision of resources in the amount needed for continuing business operations for the short and medium term. The agreement has initially been concluded for 12 months.

Part of the comprehensive restructuring plan of S&T involves focusing on core business areas in core markets. This will include the sale of its subsidiaries in Ukraine and Moldova to a strategic investor for an undisclosed purchase price. The group also confirmed that its German subsidiary will enter bankruptcy proceedings.

No further closings or sales of assets are currently planned. The commitment to the CEE region remained unchanged and S&T’s position in these markets will be strengthened further in order to achieve renewed growth.

Source: Telecompaper

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