RusForest Announces Publication of Independent Liquidation Analysis
1/21/2013 6:03 AM EST
RusForest AB
Company Announcement
RusForest Announces Publication of Independent Liquidation Analysis
Stockholm, 2013-01-21 12:03 CET (GLOBE NEWSWIRE) --
RusForest AB (publ) (“RusForest” or the “Company”) (NASDAQ OMX: RUSF), a
Swedish forestry company with operations in Russia, announces the publication
of the independent liquidation analysis conducted by Indufor Oy (“Indufor”) and
commissioned by RusForest’s bond agent, CorpNordic Sweden AB (“CorpNordic”).
In August 2012, RusForest began a broad strategic and financial review that
resulted in the restructuring proposal announced on December 12, 2012. In
order to provide bondholders with more comprehensive information, CorpNordic
and the Company agreed to engage Indufor to perform an independent liquidation
analysis. The report states that the total liquidation value of RusForest’s
assets, including forestry leases, harvesting and transportation equipment and
wood processing assets, is estimated at approximately $28 million as of
December 31, 2012, before accounting for secured debt and the costs to
liquidate the assets. The full liquidation analysis is available on the
Company’s website at: www.rusforest.com
The RusForest Board of Directors and management believe that the estimated
liquidation value is in line with the previously communicated assessment that
bondholders will find it challenging to recover any net proceeds in a
bankruptcy process.
Any assessment of a bankruptcy process should also take into account that
RusForest has approximately $15 million of secured debt net of financial leases
that was not considered in the Indufor report. In addition, the costs incurred
during a bankruptcy process, such as forestry lease fees, severance payments,
legal and advisory fees, as well as operational losses for the duration of the
liquidation process, will further reduce the net proceeds from asset sales.
The Indufor liquidation analysis has strengthened the Board of Directors’
belief that the restructuring proposal announced on December 12, 2012, creates
the highest probability of protecting the Company’s fundamental value and
creating upside for all stakeholders.
About RusForest
RusForest is a Swedish forestry company operating in eastern Siberia and the
Arkhangelsk region of Russia. The Company controls approximately 3 million
hectares of timber through long-term leases with an annual allowable cut
(“AAC”) of approximately 3.6 million cubic meters. RusForest owns five sawmills
in close proximity to its forest leases and is self-sufficient in raw material
to produce more than 400,000 cubic meters per year of sawnwood products. The
Company is listed on NASDAQ OMX Stockholm First North (ticker symbol “RUSF”).
RusForest’s largest shareholder is Vostok Nafta, which owns approximately 29
percent of the Company’s shares. For additional information, please visit the
Company’s website at: www.rusforest.com
RusForest AB’s Certified Adviser on First North is Pareto Öhman AB.
For further information, please contact:
Robert Eriksson, Investor Relations, telephone: +46 (701) 11 26 15