Peab Writes of Claims in Northland

After the announcement that the ongoing reconstruction of Northland failed and that filing for bankruptcy will be submitted, Peab has made an assessment of the consequences.

Peab has previously on several occasions stated that the total exposure in the balance attributable to Northland amounts to 260 million. In addition stated in the interim report for the third quarter that in case of bankruptcy, costs for staff redundancies and the stalled transport operations.

In the fourth quarter, outstanding interest-bearing debts to be written off, affecting net financial items by 261 million. In addition, the operating profit will be charged with closure costs amounting to 33 million.

After these value adjustments deemed no additional significant costs arise linked to the existing involvement with Northland.

- It is very sad to Northland did not manage reconstruction and it feels heavy to have to take this type of impairment. It is positive is that during the time that the mine has been in operation, we have created an efficient logistics management we hope to use at a future start-up of the mine and also to offer to other customers with similar needs, says Jesper Göransson, CEO Peab .

Peab AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 8 December 2014.

For further information, please contact:
Jesper Göransson, CEO Peab, +46 431 89 000
Niclas Brantingson, CIO Peab AB, +46 733 37 20 06
 

Peab is the Nordic Community Builder with some 13,000 employees and net sales exceeding SEK 40 billion. The Group’s subsidiaries have strategically located offices in Sweden, Norway and Finland. The share is listed on NASDAQ OMX Stockholm. The registered office of the Group is at Förslöv, Skåne in south of Sweden.

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