Componenta Castings Ltd to end restructuring programme prematurely

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Componenta Corporation Inside information on 13 October 2021 at 5 pm

The District Court of Helsinki affirmed the restructuring programme of Componenta Corporation’s (“Componenta”) fully-owned subsidiary Componenta Castings Ltd (“Componenta Castings”) on 23 August 2017. The payment programme of the restructuring programme commenced in May 2019 and will end in November 2023.

Componenta Castings has together with Componenta evaluated the grounds and prerequisites under which Componenta Castings could prematurely end the restructuring programme in accordance with its terms and conditions. The premature ending of the restructuring programme requires Componenta Castings to repay its creditors the unpaid part of their reduced restructuring debts added with the supplemental payment obligation arising from the restructuring programme. The current amount of unpaid restructuring debts under the restructuring programme is approximately EUR 6.1 million, consisting of approximately EUR 3.6 million external restructuring debts and EUR 2.5 million intra-group restructuring debts.

In deviation from the restructuring programme, Componenta Castings has proposed to its restructuring creditors the repayment of 90 percent of the unpaid reduced restructuring debt as a lump sum payment to finally repay all restructuring debts and prematurely end the restructuring programme. Componenta Casting’s proposal has been accepted by restructuring creditors representing over 91 percent of the unsecured restructuring debts of Componenta Castings. 

The Board of Directors of Componenta has today decided to carry out the aforementioned payments, amounting to EUR 3.4 million to external creditors and EUR 2.2 million to intra-group creditors, and prematurely end the restructuring programme. The intra-group restructuring debts of Componenta Castings shall be settled by converting them entirely into a new loan.

The repayment of restructuring debts is expected to take place during October. A net profit of approximately EUR 0.2 million will be realised for the group in connection with the repayment, as external restructuring debts with a book value of EUR 3.6 million shall be repaid with EUR 3.4 million. The profit will be entered into the financial items of continued operations of the group. The final amounts may differ from that specified here depending on the final extent of creditors approving Componenta Casting’s proposal. 

The premature ending of the programme will be financed with the cash reserves of the Componenta Group. The restructuring programme is considered ended when the supervisor of the restructuring programme has approved the payments and has provided creditors with the supervisor’s final account. This is expected to take place in October. Componenta will issue separate stock exchange releases in connection with the repayment of Componenta Castings’ restructuring debts and the completion of the supervisor’s final account.

Sami Sivuranta
President and CEO
For further information, please contact:
Sami Sivuranta, President and CEO, tel. 010 403 2200 
Marko Karppinen, CFO, tel. 010 403 2101

Componenta Corporation is an international technology company and Finland's leading contract manufacturer in the machine building industry. Sustainability and customer needs are at the core of the company’s broad technology portfolio. Componenta Corporation manufactures components for its customers, which are global manufacturers of machinery and equipment. The company’s stock is listed on the Nasdaq Helsinki.