Investors

Restructuring programmes

The implementation of restructuring programmes progressed as planned in 2020.

To safeguard against the COVID-19 pandemic and to ensure liquidity in circumstances where business predictability was very weak, Componenta Castings Oy agreed with major restructuring creditors to defer payments under the payment schedule of 3 May 2020 and 3 November 2020. Payments were deferred so that payments are made to creditors evenly in connection with the remaining instalments (six instalments) during the years 2021 – 2023. However, the company may also pay the  unpaid instalments earlier. Nevertheless, Componenta Castings Oy will pay the instalments defined in the payment plan to its parent company Componenta Corporation so that Componenta Corporation can pay its instalments normally in  accordance with the payment plan. The agreement improved the cash flow from financing in 2020 by EUR 0.3 million.

In 2020, Componenta Corporation paid external restructuring debts of EUR 0.3 million in May and EUR 0.3 million in November, in accordance with the restructuring plan. In accordance with the restructuring plan, Componenta Castings Oy also paid external restructuring liabilities of EUR 0.3 million in May and EUR 0.3 million in November, as well as internal restructuring liabilities of EUR 0.4 million in May and EUR 0.4 million in November.

On 31 December 2020, the group’s external restructuring debt totalled EUR 10.7 million (EUR 12.3 million). The reduction in restructuring debts includes EUR 1.2 million in restructuring debt payments and EUR 0.3 million of external restructuring debts of the bankruptcy estate of Componenta Främmestad AB. Of the group’s external restructuring debts, short-term debts amounted to EUR 1.6 million. External restructuring liabilities included EUR 0.7 million of interest-bearing debt, of which EUR 0.2 million was short-term.

According to the restructuring programmes, a supplementary payment obligation to creditors is incurred for Componenta Corporation and Componenta Castings Oy, if the company’s generated operating cash flow exceeds in any calendar year, starting from 2018 and ending in 2022, the operating cash flow predicted in the programme balance sheet for the calendar year in question, from which the operating cash flow shortfall from 2018 or later in proportion to the operating cash flow predicted in the programme balance sheet will be deducted once.

Only the company’s unsecured creditors are entitled to supplementary payments. In that case, the company has an obligation to pay a supplementary payment 50% of the amount by which the generated operating cash flow exceeded the operating cash flow predicted in the programme balance sheet for the calendar year in question, from which the operating cash flow shortfall from 2018 or later in proportion to the operating cash flow predicted in the programme balance sheet. However, there will be no supplementary payment obligation if the generated operating cash flow has exceeded the operating cash flow predicted in the programme balance sheet by a maximum of 10%. For 2020, no obligation to make a supplementary payment was created for Componenta Corporation or Componenta Castings Oy.

After the end of the financial period Componenta announced on 25 February 2021 about the premature ending of the parent company’s restructuring programme and expects to repay the debts during March 2021. Read stock exchange release here.

Repayment schedule for external restructuring debts on 31 December 2020

TEUR
2021
2022
2023
Total
Componenta Corporation
654
698
5,226
6,578
Componenta Castings Oy
1,040
1,069
2,006
1,116
Total1,6951,768
7,232
10,694

*) The larger final instalment in Componenta Corporation and Componenta Castings Oy’s repayment programme is due to the fact that income from the sale of properties not included in core business operations has been considered. This income will be used to pay debt at the end of the programme. The final instalment also includes an additional obligation of EUR 3.2 million arising from the expiry of a loan guarantee of EUR 80 million.

Repayment schedule for the intra-Group restructuring debts on 31 December 2020

TEUR
2021
2022
2023
Total
Componenta Corporation
2
2
7
12
Componenta Castings Oy
726
726
1,452
2,903
Total7287281,4592,916