The restructuring and bankruptcy filings of Componenta group companies are progressing

Componenta Corporation Stock Exchange Release on 7.9.2016 at 16.00

Componenta announced on 1 September 2016 that Componenta Corporation and Componenta Finland Oy will file for restructuring in Finland, that Componenta Främmestad AB, Componenta Wirsbo AB and Componenta Arvika AB will file for restructuring in Sweden and that the Dutch subsidiary Componenta B.V. will file for bankruptcy. The filings of the Swedish subsidiaries have been approved and the restructuring proceedings have started on 1 September 2016 (Componenta Främmestad AB and Componenta Wirsbo AB) and 2 September 2016 (Componenta Arvika AB). The Dutch subsidiary Componenta B.V. has been declared bankrupt on 2 September 2016.

Componenta Corporation will today complement its restructuring filing with interim accounts 30.6.2016 of Componenta Corporation (as a separate company) that have been approved on 7 September 2016 and an auditors statement. These interim accounts have been prepared based on the going concern concept but taking into account the commencement of the restructuring and bankruptcy proceedings of the subsidiaries. 

Due to asset value write offs made in the interim accounts the equity of Componenta Corporation (as a separate company) has become negative by approximately 9 Me. These write offs relate to receivables from subsidiaries, value of the subsidiary investments and certain other assets. When assessing the valuation of the above mentioned assets the company considered the restructuring and bankruptcy proceedings of the subsidiaries described above as well as the prudence principle set out in the Finnish Accounting Act. No write offs have been made to the debts of the company.

Based on this the company will today make a filing to the trade registry pursuant to Chapter 20 Section 23 of the Companies Act regarding loss of share capital.  It is expected that the equity of the company will become positive during the restructuring process. The board of Componenta Corporation will convene a shareholders’ meeting pursuant to Chapter 20 Section 23 of the Companies Act and the interims accounts will be available for inspection prior to the meeting pursuant to the provisions of the Companies Act.

The board of Componenta Corporation has received conversion notices from certain investors regarding its convertible capital loan. The conversion notices relate to in aggregate 5 600 000 shares. The related equity increase amounts to in aggregate 2 800 000 euros. The new shares will be registered in the trade registry as soon as possible.

Helsinki, 7 September 2016

COMPONENTA CORPORATION

For further information, please contact:

Markku Honkasalo
CFO
Tel. +358 10 403 2710

Componenta is a metal sector company with international operations and production plants located in Finland, Turkey, the Netherlands and Sweden. The net sales of Componenta were EUR 495 million in 2015 and its share is listed on Nasdaq Helsinki. The Group employs approx. 4,250 people. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers, who are manufacturers of vehicles, machines and equipment.