FRANKFURT, March 31 Loss-making German metals
recycling group Scholz AG has attracted three bids as
it seeks a buyer to inject fresh equity to put the company's
finances back on a solid footing, three sources familiar with
the transaction said.
Scholz, burdened by 1.1 billion euros ($1.5 billion) of debt
at the end of 2013, has been hit by weak metal and scrap markets
and launched a restructuring to rein in its aggressive past
expansion, selling smaller non-core operations and shutting some
Japan's Toyota Tsusho, an un-named Chinese company
and buyout group KKR handed in bids before Friday's
deadline in an auction organised by Rothschild, two of the
"There is going to be an equity value," one of the sources
said, implying that Scholz's creditors will not face any
haircuts on their loans.
Scholz, Toyota Tsusho, KKR and Rothschild declined to
A separate sales process for Scholz's aluminium and
engineering steel businesses is also under way as the group
seeks to reduce its debt to 700 million euros, the sources said.
Most of the debt is in bank loans, some of which have been
bought up by funds such as Davidson Kempner, SVP and TPG.
Scholz booked a post-tax loss of 314 million euros in 2013,
hit by charges relating to the restructuring. Earnings before
interest, tax, depreciation and amortisation shrank by 31 to 125
($1 = 0.7271 Euros)
(Reporting by Arno Schuetze; Additional reporting by Nathan
Layne; Editing by David Goodman)