Spicers Limited, formerly PaperlinX, has signed a $9.1 million agreement with PaperlinX Netherlands Holdings Bankruptcy Trustees over the company’s ill-fated attempt to expand into European markets.
“A settlement amount of €5.65 million (A$9.1 million), to be paid by the Spicers Group, has been agreed between the parties,” Spicers said in a statement to the Australian Stock Exchange (ASX). “Spicers will fund this payment out of existing net cash reserves, and settlement of this matter is expected to result in a net gain of approximately A$1.9 million in the result from ‘discontinued operations’ for the first-half of FY2019.”
Spicers says the deal rules out any further claims being made over its former Netherlands business.
“This settlement agreement primarily relates to legacy loan obligations between entities within the Spicers Group and PaperlinX Netherlands Holdings B.V. While the other terms of the settlement agreement are confidential, it also provides for the discharge and release of all other obligations between the parties, thus removing the possibility of any residual claims being brought against the Spicers Group by the Netherlands Holdings Bankruptcy Trustees.”
Former paper merchant PaperlinX changed its name to Spicers in 2015 and announced it would refocus on its profitable Australasian businesses and continue to diversify into signage, display and packaging as it recovered from the collapse of its European operations, which resulted in the loss of more than $300 million.
In September 2018, Spicers, a leading paper merchant and now a major supplier of hardware, software and consumables to the wide format, signage and display industry, sold its Asian paper businesses to global giant Japan Pulp & Paper company (JPP) for SGD 15 million ($A15.2m). JPP also owns Australasian paper, packaging and print media distributors, Ball & Doggett.
