Electronics Production | January 04, 2012

Cencorp transfers loan maturity dates

Cencorp agreed on transferring the loan maturity dates with Ahlström Capital OY, Savcor Group OY and Savcor Group Ltd.
In June, 2011 Cencorp agreed with AC Finance BV, a subsidiary of Ahlström Capital Oy, on a short-term loan of EUR one million. Cencorp has agreed today with AC Finance BV on transferring the due date of the loan from the end of December 2011 until 31 January 2012.

In June 2011, Savcor Group Oy and Cencorp agreed on extending the maturity date of a loan of some EUR 1.2 million, granted to Cencorp by Savcor Group Oy in 2009 and converted into a convertible bond on 25 May 2010, from the end of June 2011 to the end of 2011. Cencorp has agreed with Savcor Group Oy on extending the loan period until 30 June 2012.

Cencorp has received an announcement from the Australian Savcor Group Ltd that the due date concerning approx. EUR 560.000 unpaid share of the purchase price related to the Face (Telecom) acquisition will be transferred to the end of March 2012.

Cencorps Chinese subsidiary Savcor Face (Beijing) Technologies Co., Ltd has negotiated with real-estate investors on a sale-leaseback transaction regarding the plant building in Beijing. The transaction has not yet been finalized, but the company expects it to be realized during January 2012. The sales price is intended to be used to repay to Bank of China a loan of RMB 40 million, i.e. some EUR 4.9 million. Some RMB 13 million, i.e. EUR 1.6 million is due on 31 December 2011 and some RMB 15 million, i.e. EUR 1.8 million in November 2012. In addition, negotiations with the Bank of China continue in order to amend the loan installment program.

According to estimates available, the company's financing position will continue to be tight. In addition to the measures described above, the company has therefore started discussions with its major financers on measures to strengthen the financing position until the company's cash flow returns to positive, as expected.


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