Slovenia: Schoenherr advises Senior Lenders on financial restructuring of SIJ Group

"This was one of the most complex multi-stakeholder financial restructurings in Slovenia in recent years, involving nine banks from multiple jurisdictions as well as senior noteholders," commented Vid Kobe, Partner at Schoenherr. "We are proud to have guided the Senior Lenders through a process that ultimately delivers a stable contractual framework for SIJ Group, balancing the interests of stakeholders in a strategically important European steel producer."

"The successful conclusion of the long-term refinancing agreement is the result of over a year of intensive negotiations, culminating in a refinancing structure that extends maturities, provides Senior Lenders with security over SIJ Group's material assets, and establishes a platform for operational restructuring," added Schoenherr Partner Peter Gorše. "It was a privilege to work on a transaction of this scale and significance for the Slovenian market."

Schoenherr advised the Senior Lenders on the negotiation and signing of the pre-negotiation and standstill agreement (February 2025), the arrangement and closing of super senior bridge financing (August 2025) and, most recently, the negotiation and execution of a long-term refinancing agreement (LTRS) on a fully secured basis, involving EUR 330m of bank debt and EUR 41m of listed notes, as well as an intercreditor arrangement supporting the co-existence of senior lenders and noteholders.

Signed on 26 February 2026 and closed on 17 March 2026, the LTRS extends the majority of maturities to the end of 2028, stabilising SIJ Group's financial structure. As conditions of the refinancing, SIJ Group was required to extend its bond maturities, expand and restructure its management board, and commit to a search for a strategic partner. The restructuring is designed to enable SIJ Group to gradually improve profitability and reduce its overall indebtedness over the coming years.

SIJ Group is one of Europe's leading producers of stainless and special steels, with subsidiaries in 14 jurisdictions, group turnover exceeding EUR 1bln and approximately 3,500 employees.

The Schoenherr team advising on the transaction was led by Vid Kobe (Partner) and Peter Gorše (Partner), and further included Jure Tuš (Solicitor), Klemen Kreča (Solicitor), Žana Žabnikar (Associate), Hana Jerak (Associate) and Jan Primožič (Partner).

The Law Office of Loren Richards advised the Senior Lenders alongside the core Schoenherr team. SIJ Group was advised by Dentons on English law and by Jadek & Pensa on Slovenian law.