Componenta Oyj — Regulatory Filings 2021

Feb 25, 2021

Componenta Corporation to end restructuring programme prematurely

Componenta Corporation to end restructuring programme prematurely

Componenta Corporation, Inside Information, 25 February 2021 at 2.30 pm

The District Court of Helsinki affirmed the restructuring programme of
Componenta Corporation (“Componenta” or the “Company”) on 23 August 2017. Under
the restructuring programme, the unsecured restructuring debts of the Company
were reduced by 94 percent and its subordinated debts were cut entirely. The
payment programme of the restructuring programme commenced in May 2019 and will
end in November 2023.

The Company carried out a rights issue in November – December 2020, by which the
Company raised gross funds of approximately EUR 9.5 million. The Company
intended to commence negotiation with its restructuring creditors for the
premature repayment of restructuring debts. Furthermore, the purpose of the
rights issue was to strengthen the financial position of the Company.

The Company has evaluated the grounds and prerequisites under which the Company
could prematurely end the restructuring programme in accordance with its terms
and conditions. The premature ending of the restructuring programme requires the
Company to repay its creditors the unpaid part of their reduced restructuring
debts added with the supplemental payment obligations arising from the
restructuring programme, such as that based on the final amounts of conditional
and maximum amount guarantee liabilities.

In deviation from the restructuring programme, the Company has proposed to its
restructuring creditors the repayment of 90 percent of the unpaid reduced
restructuring debt and the supplemental payment obligation based on realised
guarantee liabilities of the restructuring programme as a lump sum payment to
finally repay all restructuring debts and prematurely end the restructuring
programme. The Company’s proposal has been accepted by restructuring creditors
representing over 99 percent of all unsecured restructuring debts of the
Company.

The Board of Directors of the Company has today decided to carry out the
aforementioned payments, in total approximately EUR 5.9 million, and prematurely
end the restructuring programme. This amount includes approximately EUR 0.2
million of conditional and maximum amount guarantee debts, the final amounts of
which have not been confirmed yet and the repayment of which the Company will
separately agree on with each respective creditor. The conditional and maximum
amount debts may be wholly or partially converted into new debt for the purpose
of ending the restructuring programme.

The repayment of restructuring debts is expected to take place during March. A
net profit of approximately EUR 0.7 million will be realised in connection with
the repayment, as restructuring debts with a book value of EUR 6.6 million shall
be repaid with EUR 5.9 million. The profit will be entered into the financial
items of continued operations. The final amounts may differ from that specified
here depending on how the Company will agree on the repayment of the
aforementioned unrealised conditional and maximum amount guarantee liabilities
with each respective creditor. The premature ending of the programme will be
financed with funds received through the aforementioned rights issue. The
restructuring programme is considered ended when the supervisor of the
restructuring programme has approved the payments and has provided creditors
with the supervisor’s final account. This is expected to take place in March –
April. The Company will issue separate stock exchange releases in connection
with the repayment of restructuring debts and the completion of the supervisor’s
final account.

The premature ending of the Company’s restructuring programme will not affect
the restructuring programme of Componenta Castings Oy (formerly Componenta
Finland Oy), which shall continue in accordance with its terms and conditions
until 2023.

COMPONENTA CORPORATION

Sami Sivuranta
President and CEO

For further information, please contact:

Sami Sivuranta, President and CEO, tel. +358 10 403 2200

Marko Karppinen, CFO, tel. +358 10 403 2101

Componenta is an international technology company with operations located in
Finland. With its wide technology portfolio, Componenta produces e.g. cast,
machined and unmachined components for its clients who are local and global
manufacturers of vehicles, machines and equipment. The company’s share is listed
on Nasdaq Helsinki.