Published: 2017-09-27 16:35:00 CEST
Componenta Corporation
Inside information

Componenta has completed the sale of shareholding in Turkish company

Componenta Corporation Stock Exchange Release on 27 September 2017 at 17.35

Componenta has today completed the sale of shareholding in Componenta Dökümcülük Ticaret ve Sanayi A.S. (“Turkish company”) to Döktaş Metal Sanayi ve Ticaret A.Ş. The parties signed the sale and purchase agreement on 4 August 2017 and the transaction is now final. The transaction has no cash flow impact. In connection with the closing of the sale of the shareholding the Turkish club loan banks have discharged Componenta Corporation from all liabilities and obligations based on the club loan agreement, including the discharge from a loan guarantee of EUR 80 million.

The completion of sale of shareholding in the Turkish company has some effect on the fulfillment of the restructuring programme of Componenta Corporation, confirmed by the District Court of Helsinki on 23 August 2017. In accordance with the restructuring programme the unsecured debts of Componenta Corporation were cut by 96% and the debts with lowest priority were cut in their entirety. The loan guarantee of EUR 80 million to the Turkish club loan banks has been taken into account as a conditional and maximum amount in the confirmed restructuring programme since the Turkish club loan banks had not yet discharged Componenta Corporation from the loan guarantee by the time of confirmation of the restructuring programme.

As the sale of shareholding has been completed the guarantee liability of EUR 80 million will be excluded from Componenta Corporation’s debts that have been taken into account as a conditional and maximum amount in the restructuring program. On grounds of the supplementary payment obligation included in the restructuring programme the company’s unsecured creditors are entitled to a proportion corresponding payment to the restructuring debt of EUR 80 million i.e. a supplementary payment of total EUR 3.2 million in the last payment date of the payment program in November 2023. The supplementary payment will be paid to the unsecured creditors in accordance with the restructuring programme in proportion to their receivables. The restructuring programme of Componenta Corporation still contains approximately EUR 7,3 million other debts that have been taken into account as a conditional and maximum amount, for which the payments of approximately EUR 0,3 million have been allocated in accordance with the payment programme included in the restructuring programme. The total external restructuring debts in the balance sheets of Componenta Corporation and Componenta Finland Ltd will after the debt cuts be EUR 13.5 million as the supplementary payment obligation following the exclusion of the guarantee liability of EUR 80 million and the payments allocated for the debts considered as a conditional and maximum amount have been taken into account. The guarantee liability and other debts that have been considered as a conditional and maximum amount had earlier been taken into account in liabilities outside the balance sheet.

The information regarding restructuring debts of Componenta Främmestad AB has been announced on 3 July 2017.


Helsinki, 27 September 2017

COMPONENTA CORPORATION

Harri Suutari
President and CEO

 


For further information, please contact:

Harri Suutari
President and CEO
tel. +358 10 403 2200

Marko Karppinen
CFO
tel. +358 10 403 2101



Componenta is an international technology company. Componenta specializes in supplying cast and machined components to its global customers, who are manufacturers of vehicles, machines and equipment. The company’s share is listed on Nasdaq Helsinki.