SGB-SMIT invited its lenders to the Netherlands last Friday (15 June), taking them on a site visit to its Nijmegen plant and giving them an update on its business performance. The Germany-based power transformer maker, which has been underperforming for months and plans to request a covenant reset , sought to assure lenders that it has gotten a grip on its operational problems and that sponsor One Equity Partners will be supportive. Management said the group has resolved its quality problems and expects a ramp-up in production during 2H18. It also discussed M&A plans despite its balance-sheet issues, highlighting potential synergies from potential targets, two sources familiar with the matter said.
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