Hellmann Worldwide Logistics appears to be out of the woods after its German parent company completed its delayed refinancing exercise.
The parent company has been in protracted negotiations with 11 funding partners to refinance a €159m (£125m) loan, which makes up 40% of the group’s total loans, for more than a year.
Delays to the refinancing, which saw it breach two deadlines in August 2015 and May this year, prompted independent auditor Graham Neale to flag up his concerns about its possible impact on the UK division.
In the firm’s most recent annual results for the year to 31 December 2014, published in May, KPMG's Neale warned: “The material uncertainty relating to the delays in the group refinancing and the ability of the parent group to continue to support the UK companies may cast significant doubt on the company’s ability to continue as a going concern.”
Hellmann Worldwide Logistics GmbH confirmed this week that it had completed its refinancing deal.
In a statement the company said: “The financing of the group and the growth strategy are backed by extensive bilateral and syndicated financing blocks.
“Core elements are a successfully running long term ABCP program, refinanced by the capital market and a newly concluded syndicated credit facility.”
The statement also revealed a major global restructuring of its air/sea, road/rail and contract logistics units, the introduction of a younger management team and plans to change the company’s legal structure from a GmbH & Co. KG [limited partnership] to an SE & Co. KG [a partnership limited by shares].
A spokeswoman insisted the global restructuring will not see any parts of the business shut down or sold off.
But added: "We are only in the planning phase and cannot make any statements about the impact on individual country organizations such as the UK.”
