Italian recycled cartonboard producer Reno De Medici (RDM) has taken another step toward its planned recapitalisation after signing a formal Debt Restructuring Agreement with its financial creditors.

The agreement is being filed with the Court of Milan for approval, moving the financially troubled cartonboard producer’s restructuring plan from the agreement stage toward legal implementation.

RDM continues to expect the recapitalisation to be completed during the fourth quarter of 2026, although no specific timetable has been provided for the court’s decision.

Creditors Back Restructuring Agreement

The Debt Restructuring Agreement was signed under Article 57 of the Italian Insolvency Code.

According to RDM, all lenders participating in its revolving credit facility have signed the agreement.

Support has also been secured from noteholders representing 96.11% of the company’s outstanding €600 million notes.

The high level of creditor participation represents an important milestone as RDM works to implement the recapitalisation framework agreed with financial stakeholders.

The restructuring remains subject to confirmation by the Court of Milan and other conditions required for completion.

Up to €300 Million of Debt Could Be Converted Into Equity

The main financial terms of the recapitalisation remain unchanged from the binding transaction support agreement reached in mid-July.

The plan includes the equitisation of up to €300 million of debt, meaning that part of RDM’s existing financial debt would be converted into equity.

This would reduce the company’s debt burden and change the structure of its balance sheet as part of the wider financial restructuring.

In addition, the transaction provides for €100 million in new financing through the issuance of new senior secured notes, referred to as new money notes.

Together, the debt equitisation and new financing are intended to provide RDM with a more sustainable financial structure.

Court Approval Is the Next Major Step

With the restructuring agreement now signed, attention shifts to the Court of Milan.

RDM is filing the agreement for approval under the relevant provisions of Italy’s insolvency framework.

Until that process is completed, the recapitalisation cannot be considered final.

The company has not indicated when it expects the court to issue its decision, but continues to target completion of the overall transaction in Q4 2026.

Financial Restructuring Matters for Recycled Cartonboard Operations

RDM is a significant producer of recycled cartonboard, supplying board used across folding carton and other paper packaging applications.

For a capital-intensive business such as cartonboard manufacturing, financial stability is closely connected with the ability to maintain mills, fund working capital and make necessary investments in production assets.

The proposed recapitalisation therefore carries implications beyond RDM’s balance sheet.

Reducing debt while introducing new financing could give the company greater financial flexibility as it operates in a European cartonboard market facing changing demand, pricing and production costs.

However, the transaction remains conditional, and its final financial and ownership implications will depend on successful completion of the restructuring process.

Industry Outlook

RDM’s latest agreement represents progress in a restructuring process that has moved rapidly since the binding transaction support agreement was reached in July.

Three figures will remain particularly important as the process develops: up to €300 million of debt equitisation, €100 million of new financing and creditor support representing 96.11% of the outstanding €600 million notes.

The next key development will be confirmation from the Court of Milan.

If the remaining conditions are satisfied, RDM expects to complete its recapitalisation in the fourth quarter of 2026, providing greater clarity over the financial position of one of Europe’s established recycled cartonboard producers.

Last Updated on 12/08/2026 by Jota Machinery