Carclo, the listed plastic components manufacturer, has agreed with its main secured creditors – HSBC and the pension scheme, a revised funding arrangement. The Ossett-based company has entered into new facilities with HSBC, comprising a term loan of £34.5 million and a revolving credit facility of £3.5 million.
It has also reached agreement with the trustees of the pension scheme in respect of both the actuarial deficit and the resultant deficit repair contributions to be made over the next three years; £2.8 million (2021), £3.9 million (2022) and £3.8 million (2023).
The Leeds Restructuring team at Addleshaw Goddard advised Carclo on the deal.
Carclo has also reported that group revenue for the continuing businesses was 12 per cent lower in the first quarter of its current financial year than the same period last year. However, it said that, due to “effective response by the business, and more resilient demand conditions in certain segments”, the overall trading performance in the first quarter was ahead of its initial Covid-19 adjusted assumptions.
The company’s Technical Plastics business also benefited from robust demand for products relating to Covid-19 testing.