Tecnotree Corporation Stock Exchange Release 30 September 2016 at 01:00 p.m. EEST The Administrator of the corporate restructuring of Tecnotree Corporation ("Company") has today filed the draft restructuring programme to the District Court of Espoo. The Administrator considers that the draft restructuring programme will result in a more favorable outcome for the creditors compared to bankruptcy. The Administrator's view is that if implemented, the draft restructuring programme would lead to the Company's operations being rehabilitated. The figures presented in this release are unaudited. Compared to the restructuring programme proposal filed to the District Court of Espoo on 30 March 2016, the programme is no longer based so strongly on the realization of the Company’s assets but rather on the operative cash-flow of the Company. The essential content of the draft restructuring programme is as follows:
- At the moment, the total amount of the restructuring debts to be taken into account in the restructuring proceedings is approximately 73.9 million euros. The Company has intragroup restructuring debts approximately 36.7 million euros. According to the Administrator’s draft programme the intragroup restructuring debts will be fully cut. In addition, the Company has 13.2 million euros unsecured debt. The total amount of the restructuring debts includes also approximately 23.8 million euros secured debts out of which approximately 7.9 million euros is secured by business mortgage. The Administrator is proposing that the unsecured restructuring debts be cut by 50% which would leave 50% of the amount of such debt to be repaid.
- The draft restructuring programme does include a provision on a duty to make supplementary payments on restructuring debts with no priority if the Company's actual cash flow exceeds the projected cash flow during the payment programme.
- Payments under the restructuring programme will end on 30 June 2025. The payments are broken down in appendix 15 of the draft restructuring programme. The company pays 0.1 million euros in 2016, correspondingly 1.5 million euros in 2017 and 2.0 million euros in 2018.
If the draft restructuring programme is approved, the group will record a one-off positive income effect of approximately 6.7 million euros as a result of debt rearrangement. In addition, the company will cancel provisions for interest expenses. A total of 2.0 million of these had been accrued by 30 June 2016. In appendix 14.2 of the draft restructuring programme, there is a restructuring budget compiled by the Administrator, with an operative cash flow of -4.3 million euros in 2016, 3.8 million euros in 2017 and 5.4 million euros in 2018. The figures presented in the appendix have not been disclosed by Tecnotree and the company will not disclose deviations from them. The approval and entry into force of the draft programme are conditional upon Tecnotree Corporation's General Meeting approving the draft programme. The entire draft restructuring programme is enclosed in the release. TECNOTREE CORPORATION FURTHER INFORMATION Kirsti Parvi , CFO Kirsti.parvi@tecnotree.com tel. + 358 50 517 4569 DISTRIBUTION NASDAQ Helsinki Main Media www.tecnotree.com About Tecnotree Tecnotree is a global provider of telecom IT solutions for the management of products, customers and revenue. Tecnotree helps communications service providers to transform their business towards a marketplace of digital services. Tecnotree empowers service providers to monetise service bundles, provide personalised user experiences and augment value throughout the customer lifecycle. With around 900 telecom experts, Tecnotree serves around 90 service providers in around 70 countries. Tecnotree is listed on the main list of NASDAQ Helsinki with the trading code TEM1V. For more information on Tecnotree, please visit www.tecnotree.com .
