Neo Industrial Plc STOCK EXCHANGE RELEASE June 28, 2012 at 2.00 pm
The draft restructuring program of Avilon Ltd, subsidiary of Neo Industrial Plc, has today been accepted by the District Court of Pirkanmaa. Total repayment program lightens the debt structure and secures the future operation of Avilon.
According to the confirmed restructuring program the non-security debts of Avilon Ltd will be cut down by EUR 10.3 million. The cutting will be entried as income through income statement. Additionally, EUR 4.2 million of the debts will be converted to the shares of Avilon, as fifteen debitors seized the opportunity given by the restructuring program and converted their receivables into the shares of Avilon Ltd. Totally, the debts of Avilon will be decreased by EUR 14.5 million. Part of the remaining debt, EUR 8.1 million, will be settled with a 10 year repayment program and EUR 5.2 million with the original 20 year repayment program. On Neo Industrial level the balance sheet will be strengthened by EUR 12.6 million.
- Investment project in antimicrobial fibre manufacturing will be carried out in summer and the antimicrobial post-process can be set going in August. The viscose lines will be relaunched after the necessary qualifications, product-mix and financing have been secured, says Markku E. Rentto, Managing Director of Neo Industrial.
In spite of the corporate restructuring process, Avilon has actively continued the research and development projects. The company has developed the PPV Technology, enabling the usage of paper pulp in the viscose manufacture process. Global marketing of this technology started in March 2012. An investment of EUR 0.2 million, for modifying one of the post-processing lines for the antimicrobial fibre manufacturing, will be finalized in summer. The Carbamate Technology, enabling the viscose production without carbon disulphine, is aimed to be commercialized in 2013.
Avilon Ltd filed the application for corporate restructuring program with the District Court of Pirkanmaa on September 7, 2011 as the liquidity situation turned critical due to exceptionally strong fluctuation of raw-material and viscose fiber prices. The corporate restructuring application was accepted on October 5, 2011 and the draft restructuring program was filed on May 7, 2012.
Neo Industrial Plc
Markku E. Rentto
Managing Director
Further information:
Markku E. Rentto, Managing Director, tel. +358 207 209 191
Sari Tulander, Managing Director, Avilon, tel + 358 207 800 500
Neo Industrial's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange.
Neo Industrial's business segments are Cable, Viscose Fibers and Single Family Housing.