Legres announces breach of financial covenant regarding cash and cash equivalents and resulting event of default under its senior bonds, makes a correction regarding the reported leverage ratio under the senior bonds and evaluates its liquidity position.
Legres AB (publ) (the “Company”) announces that it is in breach of one of the financial covenants under the terms and conditions (the “Terms and Conditions”) of its SEK 325 million senior secured bonds with ISIN SE0020388700 (the “Bonds”). Capitalised terms used herein shall have the meanings ascribed to them in the Terms and Conditions.
Reference is made to the Company’s press release published on 27 May 2025 (the “May Press Release”), where it reported a breach of certain financial covenants under the Terms and Conditions of the Bonds. Since then, the Company has carried out a detailed review of its liquidity position.
This review has revealed that certain client funds and other funds not available for use by the Company were mistakenly included in its reported cash balance used to assess compliance with the cash and cash equivalents covenant under the Terms and Conditions for the Bonds (the “Cash Covenant”). After a recalculation, the Company’s cash and cash equivalents as of the relevant testing date, 31 March 2025 (the “Test Date”), were determined to be SEK 17.2 million, which is lower than the previously reported SEK 23.8 million in the interim financial report for Q1 2025.
Under the Terms and Conditions, the Company is required to maintain a minimum cash and cash equivalents balance of SEK 20 million. Accordingly, the Company was not in compliance with the Cash Covenant as of the Test Date, resulting in an Event of Default.
The miscalculation also impacted the leverage covenant reported in the May Press Release. As of the Test Date, the leverage ratio was 5.30, not 5.19 as stated in the May Press Release.
As of 13 June 2025, the Company’s cash balance was SEK 10.3 million.
The Company is further exploring the possibility of improving its liquidity position by engaging in discussions with various counterparties, including its suppliers.
For more information, please contact:
Klaus Reimer, CEO
+45 40 99 55 25
klaus.reimer@sergel.com
This information is information that Legres AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 17 June 2025 14.30 CEST.