Panostaja Oyj Stock Exchange Bulletin March 20, 2017 11:50
THE BOARDS OF PANOSTAJA SUBSIDIARY TAKOMA OYJ AND TAKOMA GEARS OY DECIDE TO FILE FOR BANKRUPTCY
The Boards of Takoma Oyj, which is a subsidiary of Panostaja and parent company of Takoma Group, and Takoma Gears Oy, the Group’s subsidiary providing power transmission solutions, have today decided to file bankruptcy applications.
Takoma’s market situation has weakened significantly since the confirmation of the reorganization program on September 30, 2014, meaning that the assumptions regarding profitability and financing have not been realized. The Group has made heavy losses due to the sharp decline of the offshore and marine industry, which has diminished the Group’s solvency and liquidity.
Together with Panostaja, Takoma has implemented significant functional changes aimed at adapting the operations to the prevalent demand and making them profitable once more. However, the efforts to improve sales efficiency and acquire new customers have failed to increase business volume, and the demand for Takoma products on the market has been insufficient.
As a result of this, Takoma is currently unable to implement its reorganization program and continue its operations without significant additional financing. Panostaja has worked with Takoma to explore numerous additional financing options and the possibilities of divesting Takoma’s assets and operations without finding a satisfactory solution.
The current economic climate and Takoma’s predictions would have required significant refinancing, which Panostaja, as the majority owner, is not willing to provide.
“As an owner, we are strongly committed to developing all of our companies, but sometimes we are unfortunately forced to make difficult decisions. It is deeply regrettable that we were unable to find a solution for continuing Takoma’s operations, despite numerous attempts. We will make every effort with the bankruptcy administration to find someone to continue Takoma’s operations as soon as possible,” Panostaja CEO Juha Sarsama says.
Once Takoma Oyj has been declared bankrupt, Panostaja’s IFRS-compliant control in Takoma will end and Takoma will no longer be incorporated into Panostaja Group. In accordance with the IFRS, Takoma will be classified as a discontinued operation, and its income statement and cash flow will be listed in Panostaja’s Interim Report of April 30, 2017 under discontinued operations. In this context, Panostaja will record an estimated loss of MEUR 2.5 in the Group’s second quarter profit/loss. In addition to Takoma Oyj’s shares, Panostaja Oyj will write down all receivables from Takoma Oyj and Takoma Gears Oyj whose effect on the Group’s profit/loss has been taken into account in the loss amount.
Panostaja Oyj
Juha Sarsama
CEO
Further information:
Juha Sarsama + 358 40 774 2099 juha.sarsama@panostaja.fi
Panostaja is an investment company developing Finnish SMEs in the role of an active majority shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories. Panostaja operates in eight business segments, and Panostaja Group employs some 1,300 staff. Panostaja’s shares (PNA1V) are quoted on the NASDAQ OMX Helsinki Stock Exchange. In the 2016 financial period, the Group’s official net sales totaled MEUR 172.5.
