NEO INDUSTRIAL PLC STOCK EXCHANGE RELEASE 18 March 2014 at 5.20 pm
DISTRICT COURT OF PIRKANMAA DISMISSED THE ACTION OF THE BANKRUPTCY ESTATE OF KUITU FINLAND AGAINST NEO INDUSTRIAL PLC
The bankruptcy estate of Kuitu Finland initiated in spring 2013 an action against Neo Industrial regarding the purchase of the mill real estate of Neo Industrial’s subsequently bankrupted Avilon Fibres Ltd. Neo Industrial has given a personal quarantee on the repayment of the puchase price.
In accordance with the agreement the quaranteed debt was due for payment during 25 years. The action demanded Neo Industrial to pay the remaining EUR 5 million as non-recurrent compensation, as well as EUR 309 thousand as building cost index in addition to interests and legal expenses.
The District Court of Pirkanmaa dismissed the action of the bankruptcy estate of Kuitu Finland on 17 March and ordered Kuitu Finland to repay Neo Industrial Plc for the legal expences. The bankruptcy estate of Kuitu Finland has expressed dissatisfaction with the decision.
The provisions made in the financial statements for 2012 are in accordance with the decision of the District Court of Pirkanmaa.
Neo Industrial Plc
For further information, please contact:
Jari Salo, Managing Director, tel. +358 207 209 196
Sari Tulander, CFO, tel. +358 207 209 192
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 segment is Cable Industry.