Neo Industrial’s (OMXH: NEO1V) Single Family Housing adventure ends with a final 6.4 million Euro write-off on the share of Finndomo Ltd in Q2 2012 accounts. The company said that Finndomo’s liquidity situation hasn’t improved in spite of extensive saving measures. The unit is under corporate restructuring and Sonkajärvi factory business has been sold to Omatalo Ltd, which already had a nice backlog over there. Neo Industrial is trying to find a solution for Hartola and Haukipudas factories.
Viscose-fibre segment subsidiary Avilon Ltd’s restructuring program draft has been accepted by Pirkanmaa District Court. Debts will be cut by 10.3 million Euros, which will be shown as income while 4.2 million of debt will be converted into Avilon shares. It was not mentioned, how large a percentage this means although you could try to gauge it from the fact that altogether 14.5 million of Avilon debt is scrapped while on Neo Industrial’s book the balance sheet is strengthened by 12.6 million Euros . Avilon is left with just 12,3 million in debt, 8.1 million of which will be settled with a 10 year repayment period and the remainder with the original 20-year plan.
Neo Industrial says this secures future operations and says that investments project in antimicrobial fibre manufacturing will be carried on during the summer. The company however says that viscose lines will be re-launched only after necessary qualifications, product-mix and yes, financing, have been secured.
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