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Zapf Creation AG today announced that the syndicated loan agreement for about EUR 90 million, which originally expired on April 30, 2007, will be extended for two months until the end of June 2007. This agreement was reached by Europe's leading doll manufacturer and the syndicate banks. The extension became necessary because the ongoing negotiations about long-term follow-up financing for the Zapf Creation Group have not yet been concluded. Zapf Creation's aim is to secure follow-up financing which, in addition to a new syndicated loan agreement, also includes strengthening the company's equity base by utilizing existing authorized capital. Major shareholders of the company, among them MGA Entertainment Inc., have already undertaken to guarantee the full subscription of such a capital increase, which is to be carried out by including shareholders' subscription rights. The follow-up financing is the prerequisite for receiving an audit certificate for the company's 2006 financial statements. Because of the negotiations, it was not possible to publish the financial statements within a period of four months after the end of the fiscal year, as is required for Prime Standard companies by Deutsche Börse. Deutsche Börse has not yet made a decision regarding Zapf Creation AG's request to extend the deadline. Jens U. Keil, chief financial officer of Zapf Creation AG: "The extension of the syndicated loan agreement has given us enough time to finalize the complex negotiations about follow-up financing. Our goal is to put Zapf Creation on a sustainable, solid financial footing in order to successfully conclude the restructuring of the Group in 2007, not just operationally but also financially." |
