Lauritz.com delays amortization payment, plans to pay off bond debt

By Sarah Lizee

Olympia, Wash., Jan. 6 – Lauritz.com Group A/S said that amortization on its bond debt has been delayed and will not be made in early January 2020 as previously announced.

The company said that the delay is due to a new financing arrangement underway in connection with its negotiations to roll out Lauritz.com in Asia.

Lauritz said it has been negotiating with Tianrong Investment Group and Ali Auction about establishing a joint venture for entering the Asian auction market. The joint venture is set out to be the Asian arm of Lauritz.com.

The company said the negotiations have now moved into an advanced stage, and a letter of intent has been signed.

The letter of intent regarding the planned joint venture includes plans for a new financing for Lauritz.com Group. The financing is going to be partly equity and partly a senior loan. The proceeds will primarily be used to repay the current bond debt.

It is a condition for the new financing that the bond debt is repaid with a discount. The redemption will include the amortization and interests of the December 2019 term.

Lauritz.com operates online auction services through its trading platform based in Soborg, Denmark.

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