Draft Restructuring Programme
Tecnotree Corporation
Stock Exchange Release
30 March 2016 at 12.00 a.m. EEST
The Administrator of the corporate restructuring of Tecnotree Corporation 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.
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 11.1 million euros unsecured debt. The total amount of the restructuring debts includes also approximately 26.1 million euros secured debts out of which approximately 8.9 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 31 December 2020.
The draft restructuring programme contains obligations concerning the sale of the company’s property. The sales proceeds will be used to fund some of the payments to secured creditors and to creditors holding a business mortgage as security for their claims.
If the draft restructuring programme is approved, the group will record a one-off positive income effect of approximately 5.6 million euros as a result of debt rearrangement.
The approval and entry into force of the draft programme are conditional upon Tecnotree Corporation’s General Meeting approving the draft programme.
TECNOTREE CORPORATION
MORE INFORMATION
Ilkka Raiskinen, CEO, puhelin +358 (0)45 311 3113
ilkka.raiskinen@tecnotree.com
Tuomas Wegelius, CFO, +358 (0)400 433228
tuomas.wegelius@tecnotree.com
DISTRIBUTION
Nasdaq Helsinki Ltd
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 1000 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.
