Hela secures in-principle bank approval for debt restructure

Hela Apparel Holdings PLC announced on December 9, 2025 that it has secured the in-principle approval from all its banking partners for a debt restructuring proposal, a critical milestone in the group’s efforts to stabilise its financial position. 
The proposed restructuring plan entails concessionary interest rates and the deferment of loan repayments, providing the much-needed liquidity relief for the apparel manufacturer.
However, the banks’ agreement is subject to specific conditions regarding capital infusion. 
The restructuring is contingent upon the existing major shareholders investing a minimum of Rs.682 million into the group. Additionally, the company must source new equity investments from strategic investors amounting to approximately Rs.3 billion to Rs.4.4 billion.
In its disclosure to the Colombo Stock Exchange, Hela confirmed that discussions with several prospective strategic investors are currently underway and are “progressing positively”. 
The company has received the in-principle approval from its board of directors to negotiate the suitable investment terms, with the expectation of a favourable outcome that will improve the group’s liquidity position.
The company further stated that once investment terms are finalised, it would provide a further update to the market and seek the shareholder approval at an Extraordinary General Meeting as necessary. 
This update follows the publication of the company’s annual report on December 5, 2025 and Hela noted that it would publish an errata to correct the language regarding these developments in Item 2 of Note 25 of the financial statements contained in that report. 
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