Componenta receives MEUR 1.9 payment from former subsidiary’s bankruptcy estate

Componenta Corporation, Inside information, 16 November 2020 at 17:15
 

The bankruptcy estate of Componenta Främmestad AB has today, 16 November 2020, paid to Componenta as advanced dividend a payment of MEUR 1.9 against the receivables which were due to Componenta from the estate. The payment consists of MEUR 1.6 capital and MEUR 0.3 of interest on delayed payments. Componenta Corporation’s share of the capital is MEUR 0.4 and of the interest on delayed payments MEUR 0.1, and Componenta Castings Oy’s share of the capital is MEUR 1.2 and of the interest on delayed payments MEUR 0.2. These receivables were written down in full in Componenta’s balance sheet in 2019.

Prior to the MEUR 1.9 payment, Componenta Corporation’s debt of MEUR 0.3 to Componenta Främmestad AB’s estate was set-off against the receivables, after which Componenta Corporation’s external restructuring debts after the set-off are MEUR 6.6.

The payment from the bankruptcy estate including interest for delay as well as the share allocated for set-off for restructuring debt will be reported in Componenta’s income statement on “Result for the financial period, Discontinued Operations” and, therefore, they will improve the Group’s result for the current financial period by MEUR 2.2 and liquidity by MEUR 1.9. Componenta wrote down the receivables into the result of discontinued operations in 2019 and, thus, will do the same in 2020.

The received payment equals the total of Componenta’s receivables from the estate, and additional payments are not, therefore, expected. In the event that the final dividend of Componenta Främmestad AB bankruptcy estate would be smaller than the advanced dividend now received, Componenta is committed to returning any overpaid share.

The received payment does not affect Componenta’s guidance for the year 2020. Componenta expects the net sales of continued operations to be MEUR 65-80 in 2020. EBITDA is expected to remain positive.

Componenta Främmestad AB bankruptcy in 2019

Componenta Främmestad AB filed an application for bankruptcy with the local district court on 25 September 2019.

At the time of the bankruptcy, Componenta Corporation and Componenta Castings Oy had MEUR 2.0 intra-Group receivables from Componenta Främmestad AB. As collateral for these receivables, Componenta Främmestad AB had pledged its best priority-business mortgages with nominal value of SEK 51.9. million.

Componenta Främmestad AB’s receivables from Componenta Corporation totalled MEUR 0.4 at the time of the bankruptcy. Componenta had written down its MEUR 2.0 receivables from Componenta Främmestad AB in its consolidated financial statements of 2019 after the bankruptcy. Componenta recognized the write-down of its receivables in the result of discontinued operations in 2019.

Componenta Främmestad AB was classified as discontinued operations on 25 September 2019, and it has been reported as discontinued operations in the consolidated financial statements of 2019.

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.