Pfleiderer “back in black” and close to refinancing

Troubled panels giant Pfleiderer AG says it expects to strike a refinancing agreement this week and is also now “back in the black”.

The company, the world’s second largest producer of chipboard and fibreboard, said negotiations with its financiers were making “good progress”.

“The board is satisfied that they are driven by the intention to arrive at a fair agreement which is viable for the future of the company,” said chairman Hans Overdiek.

The company said the refinancing process was being supported by improved business at Pfleiderer.

“The business development of the group came in above the company’s own expectations in the first two months of 2011.

“As a result of the capacity reductions and price increases applied, Pfleiderer has been in the black again in Germany since the beginning of the year,” it said.

Pfleiderer has been struggling under a €914.5m debt burden and recently called an extraordinary meeting of shareholders after saying it expected to post a loss for 2010.