SIMTRONICS PROVIDES UPDATE ON FINANCIAL SITUATION
Simtronics ASA today announced that the Board of Directors is exploring a number of alternatives, hereunder discussions with its main shareholder and DnB NOR, in order to resolve the Company’s financial situation. Simtronics will in the second quarter be in breach with its renegotiated bank loan covenants.
Adding to a challenging market situation, Simtronics is currently experiencing delays in a major delivery in the Middle East. The combination of these events put pressure on Simtronics’ liquidity. The group will need approximately NOK 20 million in additional working capital. However, the long term outlook for Simtronics’ business remains positive. The Company enjoys a strong order backlog and unique fire and gas safety products.
US based United Technologies Corporation (UTC) holds through its subsidiary Autronica Fire and Security 27.2 per cent of outstanding shares in Simtronics and is the Company’s largest shareholder.
Simtronics has retained Terra Markets as its financial adviser in the current considerations.
Simtronics ASA (Oslo Stock Exchange: SIMTRO) works to prevent disasters from happening. The company is an international supplier of fire and gas safety systems, active fire fighting solutions and fire prevention systems. Simtronics' flame and gas detectors represent the most accurate, reliable and robust safety technology available. The Company's products, solutions and systems are used by the oil and gas industry as well as in shipping, petrochemical and other process industries and in mining. Simtronics has a well established market base in Europe with Norway, France, UK and Germany as the single most important markets. Simtronics' heritage goes back to 1948.