Draft Restructuring Programmes of Componenta Corpo

Componenta Corporation Stock Exchange Release 30.3.2017 at 9.46

The administrator of the corporate restructuring proceedings of Componenta Corporation and Componenta Finland Ltd has today filed the draft restructuring programmes to the District Court of Helsinki.

The administrator is of the opinion that the business of Componenta Corporation and Componenta Finland Ltd can be rehabilitated under the requirements stated in the draft restructuring programmes and that restructuring programmes fit for approval and implementation can be achieved.

The total amount of Componenta Corporation’s restructuring debt that is entered in the balance sheet and must be taken into account in the restructuring proceedings is some EUR 124 million, and this is at the same time unsecured restructuring debt. Some EUR 95 million of Componenta Corporation’s restructuring debt is to the Componenta Turkey sub-group, EUR 11 million to group companies consolidated in the consolidated financial statements, and EUR 18 million to other parties.  Componenta’s Turkish subsidiary is the largest creditor of Componenta Corporation. The unsecured debts are proposed to be cut by 96 percent. According to the draft restructuring programme, should the guarantee liability to the Turkish club loan banks not realize, would the materialized debt cut approximately two percentage points lower. According to the payment programme for unsecured restructuring debts, the company's restructuring debts will be paid every six months over five years so that the first instalment will fall due for payment in 2019 and the last in 2023. The company also has EUR 4 million in lowest-priority debt. The amount of lowest-priority debt will be cut in its entirety.

The total amount of Componenta Finland Ltd’s restructuring debt that is entered in the balance sheet and must be taken into account in the restructuring proceedings is some EUR 38 million, of which approximately EUR 1 million is secured debt and approximately EUR 37 million is unsecured restructuring debt. Some EUR 17 million of Componenta Finland Ltd’s unsecured restructuring debt is to group companies consolidated in the consolidated financial statements, EUR 6 million is to the Componenta Turkey sub-group, and EUR 14 million to other parties. According to the draft restructuring programme, the amount of unsecured debts will be cut by 75%. The secured debt of approximately EUR 1 million is to other parties. The amount of secured debt will not be cut. According to the payment programme for restructuring debts, the company's restructuring debts would be paid every six months over five years so that the first instalment will fall due for payment in 2019 and the last in 2023.

The draft restructuring programmes contain obligations concerning the sale of property of both companies.  According to the draft, during the restructuring programme, the companies must sell their real estate companies and parts thereof that are not related to the core business. In addition, in order to simplify their administrative structures, the companies must dissolve by means of liquidation proceedings or a merger their subsidiaries that have no business operations. In accordance with the restructuring programmes, the companies must also continue taking measures for improving the business operations and the organisation.

Pursuant to the draft restructuring programmes, the general meetings of the companies must make decisions concerning the reduction of the companies' share capitals so that the amount of the share capital will be EUR 1,000,000 in both companies. The reduction of the share capital is not subject to creditor protection due to the fact that the amount of the reduction is to be used for loss coverage.

The draft restructuring programmes are attached to this release.

Helsinki, 30 March 2017  

COMPONENTA CORPORATION

Harri Suutari

President and CEO

Additional Information:

Harri Suutari President and CEO tel. +358 10 403 2200

Marko Karppinen CFO tel. +358 10 403 2101

Mika Ilveskero Administrator appointed by the District Court of Helsinki Castrén & Snellman Attorneys Ltd tel. +3528 20 7765 403   

Componenta is an international technology company. Componenta specializes in supplying cast and machined components and total solutions made of them to its global customers, who are manufacturers of vehicles, machines and equipment. The company’s share is listed on Nasdaq Helsinki.