Oriflame Restructures Subsidiaries to Attract New Debt

Swedish company Oriflame, known in the direct sales cosmetics sector, is taking significant steps to alleviate its financial situation. In its latest report, it was announced that the company is relocating its subsidiaries to jurisdictions that are less sensitive to bondholder requirements. This move is connected to the need to attract new borrowing to stabilize the business, which is under pressure from rising financial obligations and changing market conditions.

According to Oriflame’s statement, these measures are aimed at optimizing the capital structure and creating a more flexible financial platform. The reason for this decision stems from age restrictions and stringent conditions that current subsidiaries under the control of bondholders must meet. This complicates access to new loans and investments.

Furthermore, the company plans to take advantage of more liberal financial legislation found in new jurisdictions. Oriflame hopes that such actions will lead to a reduction in debt burden and an improvement in liquidity, allowing the company to focus on its core business and new product development.

This move also confirms the company's overall aim of optimizing its operations and increasing efficiency, which has become especially relevant in the context of an unstable market. Successful implementation of this strategy will allow Oriflame not only to strengthen its positions but also to regain investor confidence.

Thus, Oriflame is on the brink of significant changes in its operational structure, which could open new opportunities for growth and stability in changing economic conditions.

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