The District Court of Espoo confirmed by a decision on 15 November 2016 the amended restructuring programme drafted by the supervisor Jari Salminen as the payment programme of the company. Along with the decision, the restructuring proceedings of Tecnotree Oyj came to an end. The proposal for Tecnotree’s restructuring programme was approved before the resolution of the District Court in the extraordinary general meeting on November 9, 2016
In the voting procedure preceding the confirmation, all the creditors who participated in it voted in favor of confirming the payment program.
The total amount of the restructuring debts taken into account in the payment program was approximately 73.9 million euros. The amount of intragroup restructuring debts that were fully cut was approximately 36.7 million euros. The amount of normal unsecured restructuring debts was approximately 13.2 million euros. The amount of the secured restructuring debts was approximately 23.8 million euros out of which approximately 7.9 million euros was secured by business mortgage. The capital of the unsecured restructuring debts was cut by 50 percent. Payments under the payment program will end on 30 June 2025.
The restructuring programme includes a provision regarding a duty to make supplementary payments on the unsecured restructuring debts if the actual cash flow of Tecnotree Oyj exceeds the projected cash flow during the payment program.
Along with the confirmation of the payment program, the group recorded a one-off positive income effect of approximately 6.6 million euros as a result of debt rearrangement. In addition, the company cancelled provisions for interest expenses in total of 2.7 million euros.
As stated in the restructuring programme, Tecnotree Oyj has committed itself to sell its real estate used as its office premises by 31.12.2019. The sale price shall be paid to the collateral holder Nordea Pankki Suomi Oyj. The company has a right not to sell the real estate in the given time only if approved by the supervisor and Nordea Pankki Suomi Oyj.
The District Court has appointed Attorney-at-Law Jari Salminen to supervise the implementation of the restructuring programme. The supervisor monitors the progress of the payment program and gives reports to the committee of creditors and to the creditors.