Lecta’s restructuring leaves bondholders in charge

Lecta has reached an ‘in-principle agreement’ with its creditors for a recapitalisation, which will cut the principal of its €600m senior secured notes by €380m-€400m in a debt-for-equity swap. The Barcelona-based paper company’s proposed recapitalisation qualifies as a distressed exchange, said Moody’s, and it slashed Lecta’s rating from Caa1 to Caa3.