Swedish textile recycler Re:NewCell AB has received financial support from its key shareholders and creditor banks. Through various agreements, Renewcell secured a total of 100 million Swedish krona (9 million euros).
The financial injection was necessary to “secure liquidity for the coming months,” the company explained on Thursday. But it is not a “long-term solution”. However, such a solution must be found during the first quarter of 2024. The current liquidity bottleneck is due to the recently unexpectedly weak demand for Renewcell’s textile fibers, according to a statement.
As part of the latest support measures, the company agreed new loans with its major investors H&M Fashion AB and Girincubator AB. H&M provided Renewcell with 45 million Swedish kroner and Girincubator with five million Swedish kronor. Both loans have a term until March 31, 2024.
In addition, the creditor banks BNP Paribas, Nordea and AB Svensk Exportkredit have agreed to increase their existing credit line by 10 million Swedish kronor and to extend its term until June 30 next year, Renewcell said. The lenders also gave the company access to a total of 40 million Swedish kroner from existing reserve accounts.