EQT-backed Cerba seeks French court protection
EQT-backed healthcare diagnostics group Cerba Healthcare has asked a French commercial court to open supervised restructuring proceedings as it seeks to address a debt burden of around €5bn and strengthen its liquidity position, according to a report by Bloomberg.
Cerba Healthcare, a healthcare diagnostics group backed by EQT, has petitioned a French commercial court to initiate supervised restructuring proceedings. This move aims to tackle a debt burden of approximately €5bn and enhance its liquidity position, according to a Bloomberg report. Cerba initiated conciliation proceedings at the Tribunal des Activités Économiques de Nanterre, positioning this as a platform for negotiations with creditors over its capital structure.
The decision follows ongoing talks with lenders to restructure the balance sheet, which began earlier in the year as Cerba's debt load faced mounting pressure. Neither Cerba nor EQT provided comments on the proceedings, while PSP Investments, a minority shareholder, did not immediately respond to requests for information.
Central to the restructuring discussions is Cerba's capacity to boost cash generation. The company is negotiating with France’s National Health Authorities on reimbursement tariffs for medical testing. Cerba anticipates finalizing these outcomes by the end of September. Despite initially expecting clearer pricing conditions in the second quarter, talks have exceeded expectations.
Cerba has taken steps to extend its negotiation window with lenders. In the previous month, the company agreed to a grace period for interest payments on its borrowings, extending until November. This gave creditors and Cerba more time to negotiate a longer-term resolution. Earlier this year, Cerba's private equity backers supplied a €100m loan to bolster liquidity.
Despite financial pressures, Cerba reported positive operating performance for the second quarter. EBITDA increased by about 12% year-on-year to over €122m, while revenue grew by roughly 2% to €469m. However, the company's leverage profile remains largely unchanged, with net debt exceeding €4.9bn at the end of June, or around nine times its EBITDA over the past year. Liquidity constraints persist, with Cerba holding about €108m in cash as of June.
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