Konecta, the customer-service outsourcing firm controlled by Intermediate Capital Group, has secured forbearance from a group of creditors to negotiate debt restructuring. The company skipped an interest payment on Monday, but lenders including Benefit Street Partners, BNP Paribas SA, Credit Agricole CIB, ICG Credit and Invesco Ltd. agreed to temporary relief while discussions continue.
The Spanish-headquartered company operates in 28 countries with over 100,000 employees. Beyond its €1.1 billion debt burden, Konecta is implementing an AI and digital transformation strategy. Created in 2022 through the merger of Konecta and Comdata, the company received €75 million in fresh equity from ICG last year to accelerate growth investments.
Moody's Ratings notes Konecta has burned through an average of €100 million of free cash flow annually over the past three years for integration and AI initiatives. The ratings firm expects adjusted free cash flow to remain negative over the next year but improve toward break-even.
Day-to-day operations remain unaffected by the negotiations, according to sources familiar with the matter.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing