Procaps Issues Shareholder Letter Update
Procaps Group (NASDAQ: PROC) has issued a shareholder letter update, highlighting significant developments in its restructuring efforts. The company has signed consolidated forbearance agreements covering approximately $209 million in debt, providing flexibility to support core operations while working on a comprehensive debt restructuring solution. Additionally, Procaps has received a $5 million investment from controlling shareholders via a subordinated promissory note to address immediate working capital needs.
The company is progressing on multiple fronts, including an ongoing internal investigation, financial reporting efforts, and the development of a long-term restructuring plan. FTI Consulting, Inc. has been engaged to conduct an independent business plan analysis. Despite facing challenges, Procaps remains focused on improving operational efficiency, optimizing cash flow, and securing financial flexibility to support long-term growth objectives.
Procaps Group (NASDAQ: PROC) ha pubblicato un aggiornamento nella lettera agli azionisti, evidenziando sviluppi significativi nei suoi sforzi di ristrutturazione. L'azienda ha firmato accordi di moratoria consolidati coprendo circa 209 milioni di dollari di debito, fornendo flessibilità per sostenere le operazioni fondamentali mentre lavora a una soluzione di ristrutturazione del debito completa. Inoltre, Procaps ha ricevuto un investimento di 5 milioni di dollari da azionisti di controllo tramite un notaio subordinato per affrontare le esigenze immediate di capitale circolante.
L'azienda sta progredendo su più fronti, inclusa un'indagine interna in corso, sforzi di reporting finanziario e lo sviluppo di un piano di ristrutturazione a lungo termine. FTI Consulting, Inc. è stata coinvolta per condurre un'analisi indipendente del piano aziendale. Nonostante le sfide, Procaps rimane concentrata su migliorare l'efficienza operativa, ottimizzare il flusso di cassa e garantire flessibilità finanziaria per sostenere gli obiettivi di crescita a lungo termine.
Procaps Group (NASDAQ: PROC) ha emitido una actualización en la carta a los accionistas, destacando desarrollos significativos en sus esfuerzos de reestructuración. La compañía ha firmado acuerdos de tolerancia consolidados que cubren aproximadamente 209 millones de dólares en deudas, proporcionando flexibilidad para apoyar las operaciones centrales mientras trabaja en una solución integral de reestructuración de deudas. Además, Procaps ha recibido una inversión de 5 millones de dólares de los accionistas controladores a través de un pagaré subordinado para abordar necesidades inmediatas de capital de trabajo.
La compañía está avanzando en múltiples frentes, incluida una investigación interna en curso, esfuerzos de informes financieros y el desarrollo de un plan de reestructuración a largo plazo. FTI Consulting, Inc. ha sido contratada para llevar a cabo un análisis independiente del plan de negocios. A pesar de enfrentar desafíos, Procaps sigue enfocado en mejorar la eficiencia operativa, optimizar el flujo de caja y asegurar flexibilidad financiera para apoyar los objetivos de crecimiento a largo plazo.
Procaps Group (NASDAQ: PROC)는 주주 서신 업데이트를 발표하며 구조조정 노력에서 중요한 발전을 강조했습니다. 이 회사는 약 2억 0천 9백만 달러의 부채를 포함하는 통합 유예 계약을 체결했습니다, 이는 기본 운영을 지원하고 종합적인 부채 구조조정 솔루션을 마련하는 유연성을 제공합니다. 또한, Procaps는 지배 주주로부터 500만 달러의 투자를 받았습니다 이 자금을 활용하여 즉각적인 운영 자본 필요 사항을 해결했습니다.
회사는 진행 중인 내부 조사, 재무 보고 작업 및 장기 구조조정 계획 개발 등 여러 분야에서 진전을 보이고 있습니다. FTI Consulting, Inc.가 독립적인 사업 계획 분석을 수행하도록 고용되었습니다. 도전에 직면해 있음에도 불구하고, Procaps는 운영 효율성을 개선하고, 현금 흐름을 최적화하며, 재무적 유연성을 확보하는 데 집중하고 있습니다. 이는 장기적인 성장 목표를 지원합니다.
Procaps Group (NASDAQ: PROC) a publié une mise à jour dans sa lettre aux actionnaires, soulignant des développements significatifs dans ses efforts de restructuration. L'entreprise a signé des accords de sursis consolidés couvrant environ 209 millions de dollars de dettes, offrant une flexibilité pour soutenir les opérations essentielles tout en travaillant sur une solution globale de restructuration de la dette. De plus, Procaps a reçu un investissement de 5 millions de dollars de la part des actionnaires contrôlants via un billet à ordre subordiné pour faire face aux besoins immédiats en fonds de roulement.
L'entreprise progresse sur plusieurs fronts, y compris une enquête interne en cours, des efforts de reporting financier et le développement d'un plan de restructuration à long terme. FTI Consulting, Inc. a été engagée pour réaliser une analyse indépendante du plan d'affaires. Malgré les défis, Procaps reste concentrée sur l'amélioration de l'efficacité opérationnelle, l'optimisation des flux de trésorerie et la sécurisation de la flexibilité financière pour soutenir les objectifs de croissance à long terme.
Die Procaps Group (NASDAQ: PROC) hat ein Update im Aktionärsbrief herausgegeben, in dem bedeutende Entwicklungen ihrer Restrukturierungsbemühungen hervorgehoben werden. Das Unternehmen hat konsolidierte Stundungsvereinbarungen über etwa 209 Millionen Dollar Schulden unterzeichnet, die Flexibilität bieten, um die Kernaktivitäten zu unterstützen, während an einer umfassenden Lösung zur Restrukturierung der Schulden gearbeitet wird. Darüber hinaus hat Procaps eine Investition von 5 Millionen Dollar von den kontrollierenden Aktionären erhalten über eine nachrangige Schuldverschreibung, um dringenden Bedarf an Betriebskapital zu decken.
Das Unternehmen macht Fortschritte in mehreren Bereichen, einschließlich einer laufenden internen Untersuchung, Anstrengungen zur finanziellen Berichterstattung und der Entwicklung eines langfristigen Restrukturierungsplans. FTI Consulting, Inc. wurde beauftragt, eine unabhängige Analyse des Geschäftsplans durchzuführen. Trotz der Herausforderungen bleibt Procaps fokussiert auf die Verbesserung der Betriebseffizienz, die Optimierung des Cashflows und die Sicherstellung finanzieller Flexibilität, um die langfristigen Wachstumsziele zu unterstützen.
- Signed forbearance agreements covering $209 million in debt, providing operational flexibility
- Received $5 million investment from controlling shareholders for immediate working capital needs
- Engaged FTI Consulting for independent business plan analysis to support restructuring efforts
- Company's cash flow remains under significant pressure
- Ongoing internal investigation and delayed financial reporting
- Need for comprehensive debt restructuring indicates financial distress
- Short-term $5 million investment insufficient to address long-term liquidity needs
Insights
Procaps Group's shareholder letter reveals significant financial challenges. The company has secured forbearance agreements for $209 million in debt, providing temporary relief from payments and enforcement actions. This buys time but underscores the severity of their financial situation. A
The forbearance agreements and restructuring efforts highlight Procaps' precarious legal position. By pausing payments and preventing lenders from enforcing remedies, the company has temporarily staved off potential bankruptcy proceedings. However, this is a double-edged sword. While it provides breathing room, it also signals to creditors and the market that Procaps is in serious financial trouble. The ongoing internal investigation could potentially uncover legal issues, especially concerning financial reporting. The
Procaps' situation reflects broader challenges in the LatAm healthcare and pharmaceutical services sector. The company's struggles highlight the volatility and risks in emerging markets, particularly in healthcare. The need for a comprehensive restructuring plan suggests that Procaps' business model may not have been sustainable in its current form. This could prompt investors to reassess similar companies in the region. The
MIAMI and BARRANQUILLA, Colombia, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Procaps Group, S.A. (NASDAQ: PROC) (“Procaps” or the “Company”), a leading integrated LatAm healthcare and pharmaceutical services, today issued the below letter to shareholders from José Antonio Vieira, CEO of Procaps, with updates on the Company’s restructuring and strategic plan projects.
“Dear Shareholders,
We are pleased to update you on several significant developments as we continue to move forward with our strategic plan and financial restructuring efforts.
Forbearance Agreements
We have successfully signed consolidated forbearance agreements covering approximately an aggregate of
Shareholder Investment
We have received a
We continue making progress on other fronts:
Internal Investigation and Financial Reporting: We continue to work diligently alongside our legal and accounting advisors, in cooperation with our external auditors, to complete the internal investigation and report our financial statements. Our focus remains on ensuring the accuracy and completeness of our financial reporting.
Debt Restructuring: Simultaneously, we are working closely with our financial advisors to develop a comprehensive, long-term restructuring plan. FTI Consulting, Inc. has been engaged to conduct an independent business plan analysis, which is already well underway. This independent review will provide us with critical insights to support our efforts in restructuring our debt and positioning Procaps for sustainable financial health moving forward.
Looking Forward
While we continue to face challenges, we remain focused on executing our strategic plan. Our goals include improving operational efficiency, optimizing cash flow, and securing the financial flexibility required to support our long-term growth objectives.
Thank you for your continued support and patience as we complete the internal investigation, while working diligently to strengthen our financial position and create sustainable value for all our stakeholders. We will continue to provide updates as we reach key milestones in our journey.
Sincerely,
José Antonio Vieira
CEO of Procaps Group”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Procaps Group
Procaps Group, S.A. (“Procaps”) (NASDAQ: PROC) is a leading developer of pharmaceutical and nutraceutical solutions, medicines, and hospital supplies that reach more than 50 countries in all five continents. Procaps has a direct presence in 13 countries in the Americas and nearly 5,000 employees working under a sustainable model. Procaps develops, manufactures, and markets over-the-counter (OTC) pharmaceutical products, prescription pharmaceutical drugs (Rx), nutritional supplements, and high-potency clinical solutions.
For more information, visit www.procapsgroup.com or Procaps’ investor relations website investor.procapsgroup.com.
Investor Contact:
Melissa Angelini
ir@procapsgroup.com
+1 754 260-6476
investor.procapsgroup.com
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," “goal,” “objective,” “will,” “may,” “should,” “can,” “project” and other similar expressions that predict or indicate future events, objectives, results or trends or that are not statements of historical matters. Such forward-looking statements include, without limitation, projected financial information, the Company’s expectations about the timing of completion of the internal investigation and filing of the 2023 20-F, the Company’s statements regarding seeking additional financing, statements related to the Company’s plans, outlook and strategy, other Company initiatives and objectives or forecasts related to the Company’s business, performance and industry. These forward-looking statements involve substantial risks and uncertainties, or assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, and actual results could vary materially from these forward-looking statements. Factors that may cause future results to differ materially from management’s current expectations include, among other things, the discovery of additional information relevant to the internal investigation; the conclusions of management (and the timing of the conclusions) concerning matters relating to the internal investigation; the timing of the review by, and the conclusions of, the Company’s independent registered public accounting firm regarding the internal investigation and the Company’s financial statements; the possibility that errors may be identified; the risk that the completion and filing of the Form 20-F will take longer than expected; the inability to successfully implement or execute on the Company’s strategic objectives or initiatives; the inability to obtain additional financing; the inability to successfully implement or execute on our restructuring plans; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; the inability of the Company to execute on its expense reductions plans or growth initiatives; and other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission ("SEC") by the Company. The Company disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
FAQ
What is the total debt covered by Procaps' (PROC) forbearance agreements?
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Who is conducting the independent business plan analysis for Procaps (PROC)?
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