PVC specialist to ask shareholders for €100m to help with €160m debt pile

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The Independent Online

Deceuninck, the Euronext-listed construction products supplier, will ask shareholders to stump up €100m (£90m) through a rights issue to help the company with its debt difficulties. The London office of Close Brothers is understood to be advising the PVC housing products specialist, which has its UK base in Calne, Wiltshire.

A Brussels-based source said that the company "is moving towards a rights issue" which will help pay off a debt reported at more than €160m at the end of last year. Deceuninck admitted earlier this year that it was eyeing cost cuts in its UK, US and Polish divisions.

The company made a loss of €37.4m in 2008 and the board cancelled a dividend payment to shareholders. Deceuninck made a €5.3m profit in 2007.

Although it has breached the terms of its loans, the company has previously stated that it hoped to raise capital in 2009.