Its banking syndicate had reduced its credit facility after the company broke its banking covenants following an accounting scandal at its Italian operation in March. Subsequent poor financial results in August caused a 40% drop in share price and a credit rating downgrade.
Getronics offloaded the Italian business for just one euro in June and also sold its operations in Austria, Czech Republic, Slovakia, and Poland. Last month it sold its human resources division to staffing agency Randstad Holding for 65m euros ($83m).
The sale of the HR business seems to have placated the banks, which have reinstated its access to 284m euros ($364m) of credit, and now Getronics has said it is able to fund its working capital needs, and will not be forced to make further divestments.
Investment bank UBS immediately upgraded its rating on the company to buy from hold, and its share price increased by almost 6%.
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