Componenta Främmestad AB has sufficient support secured for the restructuring proceeding

Componenta Corporation Stock Exchange Release on 29.5.2017 at 13.40

On 29 May 2017 Componenta Främmestad AB has filed an application to the Skaraborg district court for an extension of three months for the restructuring proceeding of Componenta Främmestad AB and for convening a composition hearing.   

Componenta Främmestad AB and the Turkish subsidiary of Componenta, Componenta Dökümcülük Ticaret ve Sanayi A.S., have signed a separate agreement regarding the EUR 11.4 million restructuring debt. In accordance with the agreement, the debt is cut by 75% and shall be paid back within a period of six years, after the repayment of the other restructuring debt. The repayment is tied to the EBITDA of Componenta Främmestad AB. Componenta’s Turkish subsidiary is the most significant creditor and casting supplier for Componenta Främmestad.

As a result of this agreement there is sufficient support for the restructuring proceeding of Componenta Främmestad AB.

On 6 March 2017 Componenta announced that it has granted extension from Skaraborg district court for restructuring proceeding of Componenta Främmestad AB until 1 June 2017. Reaching an agreement relating to the internal debt between Componenta Främmestad AB and Componenta Dökümcülük Ticaret ve Sanayi A.S. was seen as a prerequisite for a viable composition proposal.

Helsinki, 29 May 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.