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Componenta and Componenta Finland draft restructuring programs filed
By Caroline Salls
Pittsburgh, March 30 – The administrator for Componenta Corp. and Componenta Finland Ltd.’s restructuring proceedings filed a draft restructuring program for the companies on March 30 with the District Court of Helsinki.
The restructuring proceedings involve €124 million in unsecured debt.
The administrator said Componenta’s Turkish subsidiary is its largest creditor.
Under the restructuring program submitted on Thursday, the unsecured debts are proposed to be cut by 96%, subject to a 2% drop if Turkish club loan banks’ guarantee liability is not realized.
Componenta’s restructuring debts will be paid every six months over five years so that the first installment will fall due for payment in 2019 and the last in 2023.
A total of €4 million in lowest-priority debt will be eliminated entirely.
Meanwhile, the total amount of Componenta Finland restructuring debt covered by the program is €38 million, of which about €1 million is secured debt and €37 million is unsecured restructuring debt.
According to the draft restructuring program, Componenta Finland’s unsecured debts will be cut by 75% and will be paid under the same terms as the Componenta debt.
In addition, the programs require both companies to sell property, including their real estate companies and components that are not related to the core business.
In order to simplify their administrative structures, the programs require the companies to dissolve by means of liquidation proceedings or a merger.
The companies’ shareholders will be required to make decisions concerning the reduction of share capitals so that the amount of the share capital will be €1 million for both companies.
Componenta is a supplier of cast and machined components and is based in Helsinki, Finland.
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