YA Holdings’ subsidiary YrkesAkademin AB applies for company reconstruction

The board of YA Holding AB (publ) (“YA Holding” or the “Company”) announces that the wholly owned subsidiary YrkesAkademin AB today has applied for company reconstruction at Falu District Court.

”The aim is to save the business, jobs and socially important education programs.”

YrkesAkademin AB is one of Sweden’s leading providers of socially important labor market education and municipal vocational education within shortage professions such as transport, construction, service, technology and industry. The operations has been carried out for about 25 years but has now faced an immediate liquidity situation requiring the board and management to act. Several factors have led to the current situation, however, lower revenues and substantially increased costs for running the education programs have been the primary factors. This is mainly due to a significant discrepancy in the Swedish Public Employment Service’s allocated participants to professional driver education. When the number of allocated participants has been insufficient in numbers, it is not possible to bear the costs for staff, vehicles and premises in the long-term. Increased costs arising from Russia’s invasion of Ukraine and the high inflation have also played a part, including substantially increased prices for gas and electricity. In addition, effects from the pandemic have affected the operations. An application for company reconstruction has therefore been submitted to Falu District Court today. YrkesAkademin AB has proposed the lawyer (Sw. jur kand) Mikael Kubu from Ackordscentralen Stockholm as administrator.

The purpose of the reconstruction is to create long-term sustainable conditions to secure operations, jobs and education programs. The daily operations will continue, but labor market education and vocational education with too few participants will be affected in the process. YrkesAkademin AB will do its outmost to ensure that participants affected shall be able to apply for other education.

Company reconstruction is a tool to avoid bankruptcy for companies that have payment difficulties but in the long run have good opportunities to live on. The existing board and management continues to represent and be responsible for the business during the reconstruction.

- Despite there being a significant shortage of drivers in the transport sector for example, the number of applicants needed by the industry, as estimated by the Swedish Public Employment Service and for which we have dimensioned our operations, is not received. We have to adjust our operations to the actual demand. It is a very unfortunate and tough decision to apply for reconstruction, but we are obliged to take responsibility in this strained situation and create long-term sustainable conditions for the business, says Martin Modig, CEO.

In parallel with the decision to apply for company reconstruction in YrkesAkademin AB, YA Holding has negotiated solutions to finance the reconstruction with certain holders of the outstanding bonds with ISIN SE0016831150 (the “Bondholder Committee”). The Bondholder Committee represents approximately 49.2 percent of the adjusted nominal amount under the bonds. The negotiations between YA Holding and the Bondholder Committee has resulted in an agreement (i) where certain of the members of the Bondholder Committee undertakes to provide debt financing up to a nominal amount of SEK 34 million (approximately SEK 32.3 million in cash after a so called Original Issue Discount) and (ii) an undertaking from the Bondholder Committee to waive some of the terms and conditions of the bonds (the “Terms and Conditions”), including that the company reconstruction shall not constitute a so called Event of Default under the Terms and Conditions, and to approve certain amendments to the Terms and Conditions. The amendments to the Terms and Conditions are carried out to enable the raising of the debt financing, the proceeds of which will mainly be used to finance the reconstruction. A written procedure regarding this (the “Written Procedure”) is intended to be initiated as soon as possible.

In addition to negotiating solutions to secure reconstruction financing, the Bondholder Committee has instructed Nordic Trustee & Agency AB (publ) (the “Agent”) as agent under the bonds to, during the period of the Written Procedure, not to accelerate the repayment of the bonds and not to enforce the security provided under the Terms and Conditions due to the company reconstruction.

In addition, the Company is in ongoing discussions with Swedbank, which has expressed a positive view on the company reconstruction.

Sender

Martin Modig, CEO YA Holding AB (publ)

For press questions, please contact:

Alice Hedin, acting press secretary
Phone: +46 (0) 70 878 91 05
E-mail: alice.hedin@ya.se