Reuters reports that Whirlpool is to increase its stake in Alno in a move to cut the debt of Germany’s second-largest kitchen manufacturer and to reverse the decrease in Alno’s revenues.
Whirlpool will buy all shares that cannot be placed with other investors in a €46 million (£36 million) capital increase said Alno Chief Executive Max Mueller in a conference call.
Alno’s banks, including Germany’s second biggest lender Commerzbank, are to waive 20% of the outstanding loans and have the remaining €44 million paid back.
“One should have done this three years back, but the former executives were scared of putting things in order”, Mueller said.
Whirlpool already owns 18.8% of Alno. Family owners and financial investor German Capital will not buy new shares and see their stake diluted to a combined 5 percent.
Alno has been hit by stiff competition in the kitchen sector, which has led to accumulated losses of €172 million since 2006 and a 26% drop in turnover since then