VKG seeks corporate reconstruction and calls extraordinary shareholder meeting for authorization of new share issue

As announced on 18 January 2008, Värmekyl Grossisten Scandinavia AB (publ) has posted a negative operating result for the full year 2007, which has also led to a highly strained liquidity situation in the company. The Board of Directors of Värmekyl Grossisten Scandinavia AB (Publ.) has therefore initiated a process to find a new financing and business structure.

As part of this process, the Board decided today, 24 January 2008, to apply for a corporate reconstruction. In consultation with Skandinaviska Enskilda Banken (SEB), VKG has retained Ackordscentralen Stockholm AB to perform the reconstruction.
VKG’s rapid expansion in 2007, which was partly acquisition-driven, has resulted in a dramatic cost increase and quality problems in deliveries. Through a reconstruction it will possible to reach an agreement with the company’s creditors, some of which are banks. This, in combination with action programs and cost-cutting measures, can strengthen the company’s balance sheet and thereby improve VKG’s ability to attract new capital. VKG is currently in discussions with a number of possible investors.

The Board of VKG has also decided to call an extraordinary general meeting to obtain shareholder approval for a new share issue.



For questions regarding the press release, please contact:

Tom Ekevall Larsen
CEO
+46 (0)76 13 52 125

Tomas Thorsbrink
CFO
+46 (0)768 26 66 15