THE RETAIL BULLETIN - The home of retail news
Click here
Home Page
News Categories
Commentary
Department Stores
Electricals and Tech
Entertainment
Fashion
Food and Drink
General Merchandise
Grocery
Health and Beauty
Home and DIY
Interviews
People Matter
Retail Business Strategy
Property
Retail Solutions
Electricals & Technology
Sports and Leisure
Christmas Ads
Shopping Centres, High Streets & Retail Parks
Retail Events
People in Retail Awards 2024
Retail HR Central 2024
The Future of The High Street 2024
Retail HR Summit
THE Retail Conference
Upcoming Retail Events
Past Retail Events
Retail Insights
Retail Solutions
Advertise
About
Contact
Subscribe for free
Terms and Policies
Privacy Policy
Ahold given €2.65bn credit lifeline

Bank deal is key step in stabilising finances March 5 2003 Netherlands supermarket giant Ahold has been thrown a €2.65bn credit lifeline by a consortium of… View Article

GENERAL MERCHANDISE NEWS

Ahold given €2.65bn credit lifeline

Bank deal is key step in stabilising finances
March 5 2003
Netherlands supermarket giant Ahold has been thrown a €2.65bn credit lifeline by a consortium of banks.

The revolving credit facility with ABN AMRO, Goldman Sachs, ING, JP Morgan and Rabobank is secured against Ahold’s core Dutch and US supermarket business, and will be used meet debt commitments and provide working capital for the business.
Henny de Ruiter, chairman of Ahold’s Supervisory Board, said: “Entering into this new credit facility is an important step in stabilising Ahold’s financial condition and demonstrates our continued access to significant liquidity. We are extremely pleased by the vote of confidence shown by the lender group, as well as the ongoing support shown by Ahold’s existing suppliers.
“While no one can predict the future, we are encouraged by the lenders’ conclusion to move forward and we remain optimistic about the company’s prospects. With this new credit facility in place, the company can now turn its attention to the development of longer term solutions to the problems that have arisen from Ahold’s recently disclosed accounting issues.”
The cash is being made available in two waves, with a total of US$1.285bn and €600m available now, and the remainder dependent on 2002 company accounts being submitted by the end of June.
Ahold is being investigated by the US Department of Justice and Securities and Exchange Commission over accounting irregularities at its US Foodservice business. The company said it is fully cooperating with these investigations.
De Ruiter added: “Ahold has great businesses, like Stop & Shop and Albert Heijn, with solid market positionssignificant assets, strong cash flow, loyal customers and dedicated staff. We are continuing to focus on serving our customers, wherever they may be, to the best of our abilities.”

Subscribe For Retail News