Componenta Corporation to end restructuring programme prematurely

Componenta Corporation, Inside Information, 25 February 2021 at 2.30 pm

The District Court of Helsinki affirmed the restructuring programme of Componenta Corporation (“Componenta” or the “Company”) on 23 August 2017. Under the restructuring programme, the unsecured restructuring debts of the Company were reduced by 94 percent and its subordinated debts were cut entirely. The payment programme of the restructuring programme commenced in May 2019 and will end in November 2023.

The Company carried out a rights issue in November – December 2020, by which the Company raised gross funds of approximately EUR 9.5 million. The Company intended to commence negotiation with its restructuring creditors for the premature repayment of restructuring debts. Furthermore, the purpose of the rights issue was to strengthen the financial position of the Company.

The Company has evaluated the grounds and prerequisites under which the Company could prematurely end the restructuring programme in accordance with its terms and conditions. The premature ending of the restructuring programme requires the Company to repay its creditors the unpaid part of their reduced restructuring debts added with the supplemental payment obligations arising from the restructuring programme, such as that based on the final amounts of conditional and maximum amount guarantee liabilities.

In deviation from the restructuring programme, the Company has proposed to its restructuring creditors the repayment of 90 percent of the unpaid reduced restructuring debt and the supplemental payment obligation based on realised guarantee liabilities of the restructuring programme as a lump sum payment to finally repay all restructuring debts and prematurely end the restructuring programme. The Company’s proposal has been accepted by restructuring creditors representing over 99 percent of all unsecured restructuring debts of the Company.

The Board of Directors of the Company has today decided to carry out the aforementioned payments, in total approximately EUR 5.9 million, and prematurely end the restructuring programme. This amount includes approximately EUR 0.2 million of conditional and maximum amount guarantee debts, the final amounts of which have not been confirmed yet and the repayment of which the Company will separately agree on with each respective creditor. The conditional and maximum amount debts may be wholly or partially converted into new debt for the purpose of ending the restructuring programme.

The repayment of restructuring debts is expected to take place during March. A net profit of approximately EUR 0.7 million will be realised in connection with the repayment, as restructuring debts with a book value of EUR 6.6 million shall be repaid with EUR 5.9 million. The profit will be entered into the financial items of continued operations. The final amounts may differ from that specified here depending on how the Company will agree on the repayment of the aforementioned unrealised conditional and maximum amount guarantee liabilities with each respective creditor. The premature ending of the programme will be financed with funds received through the aforementioned rights issue. 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 March – April. The Company will issue separate stock exchange releases in connection with the repayment of restructuring debts and the completion of the supervisor’s final account.

The premature ending of the Company’s restructuring programme will not affect the restructuring programme of Componenta Castings Oy (formerly Componenta Finland Oy), which shall continue in accordance with its terms and conditions until 2023.

COMPONENTA CORPORATION

Sami Sivuranta
President and CEO

For further information, please contact:

Sami Sivuranta, President and CEO, tel. +358 10 403 2200

Marko Karppinen, CFO, tel. +358 10 403 2101

Componenta is an international technology company with operations located in Finland. With its wide technology portfolio, Componenta produces e.g. cast, machined and unmachined components for its clients who are local and global manufacturers of vehicles, machines and equipment. The company’s share is listed on Nasdaq Helsinki.