Belgian PVC window frame maker Deceuninck said on Saturday it had sealed final deals as part of a restructuring of its credit arrangements, paving the way for a rights issue of up to 85 million euros.

In May, Deceuninck said it had reached a long-term framework agreement with lenders about the restructuring and shareholders approved the proposed rights issue at a meeting in June.

Now that a final agreement has been reached with the lenders, Deceuninck and its management team can once again fully focus on its core business, its clients and suppliers, chairman Pierre-Alain De Smedt said in a statement.

The company, which saw its first-half net loss widen by 51 percent to 8.9 million euros, added the agreements ensure the group has sufficient financial headroom and liquidity to face the challenging market circumstances and its restructuring.

Deceuninck, which makes a range of PVC-based products for the construction industry, said the preparations for the rights issue are at an advanced stage and it expects to announce the subscription price and timeframe in the short-term.

The restructuring package involves conversion of loan agreements into a credit line of 137 million euros, repayable within 4 years and a new agreement with noteholders involving 28.2 million euros and $85.8 million, repayable within 5 years.

The proceeds of the rights issue will be used for debt repayments of 41.3 million euros. The company may use the surplus for working capital purposes and to pay the costs of the financial and operational restructuring.

ING, KBC Securities, PNB Paribas Fortis and Dexia Bank have fully underwritten the rights issue. (Reporting by Aaron Gray-Block; Editing by Sugita Katyal)