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Improved financing conditions for Gamma Holding

15
Jul '09
Gamma Holding has reached an agreement in principle with the existing syndicate of banks on changes to the previously agreed financing arrangements up to March 2010. The changes represent improved conditions for the Group.

In the new improved agreement the financial covenants have been eased and account has been taken of the difficult market conditions with which Gamma Holding has to contend. Moreover, an extension of the financing until June 2011 is possible. This gives the company time to put into effect its programme of cost savings, divestments and restructurings. One of the conditions for this extension is the granting of a conversion right to the syndicate of banks.

This right permits the banks to convert a portion of the loan facilities amounting to EUR 30 million into newly issued cumulative preference shares. The dividend on the cumulative preference shares is 12% of the amount paid on those shares. In this way the syndicate of banks can jointly obtain at least 50.1% of the voting rights in Gamma Holding's increased issued share capital. The banks can only exercise this option if (i) the available credit under the new credit agreements is less than EUR 5 million, or (ii) the EBITDA in relation to the net debt is greater than 7.5.

The granting of the conversion right and the amendment of Gamma Holding's articles of association which this necessitates have to be approved by the shareholders. To this end, an Extraordinary General Meeting of Shareholders has been convened at Gamma Holding, at the address Panovenweg 12, Helmond, on Thursday 30 July 2009 at 11.00 hrs.

The full agenda for this meeting, with explanatory notes and the related documents, including a motion to amend the articles of association, are available for inspection at the company and at ABN AMRO Bank N.V., acting under the name RBS, Gustav Mahlerlaan 10, 1082 PP Amsterdam, and are also available on Gamma Holding's website.

Gamma Holding N.V.


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