The Spanish brand Mango is trying to refinance its debt, which currently amounts to 500 million euros.
Debt consists of two parts. The first is a loan of 170 million euros, which expires at the end of the 2020 fiscal year. The second part – 330 million euros – should be given in 2020.
Together with the extension of the maturity term, the chairman of the company’s board of directors, Isak Andic will ask for a lower interest rate, which is likely to depend on the financial performance of Mango in the current financial year. In 2017, the company suffered losses, but in 2019, it expects EBITDA to reach 150 million euros.
Also, there was information about a possible change of ownership. This means that Mango can be put up for sale, and this will lead to the fact that creditors will have to revise the terms with the new owner.
The future sale is most likely related to the age of Isak Andik (age 65) and the difficulties in finding a suitable successor within the family and the immediate environment.