Ekotechnika GmbH: Draft of the IDW S6 report confirms that Ekotechnika is capable of being restructured

Ekotechnika GmbH: Draft of the IDW S6 report confirms that Ekotechnika is capable of being restructured

22 April 2015 Corporate News

  • Audit firm PwC submits comprehensive draft of the restructuring report (Sanierungsgutachten)
  • Report confirms that Ekotechnika GmbH is capable of being restructured provided that the operational and financial restructuring measures are implemented successfully

Walldorf, 22 April 2015 – Ekotechnika GmbH has today received the confirmation that the company is capable of being restructured on the basis of the targeted measures.

This is the result of the restructuring report (IDW S6 Sanierungsgutachten) prepared by PricewaterhouseCoopers (PwC) at the instruction of Ekotechnika GmbH. The going concern prospects are based on the restructuring concept prepared and already announced by the company, which comprises several operational and financial measures still to be implemented. In financial terms, it primarily comprises measures aimed at strengthening the company’s equity base and liquidity. To assess whether the company can continue as a going concern, the corporate concept and the financial plans and budgets were analysed and subjected to sensitivity tests.

In their draft report, the experts conclude that Ekotechnika GmbH is generally capable of being restructured provided that the restructuring measures are implemented as planned and the overall conditions for the Russian agricultural machinery sector stabilise successively.

The restructuring report (Sanierungsgutachten) is based on the IDW S6 requirements for the preparation of restructuring concepts (IDW S6 - Anforderungen an die Erstellung von Sanierungskonzepten) including the requirements of the BGH Supreme Court.

Holders of the Ekotechnika bond 2013/18 (ISIN: DE000A1R1A18) who sign a release letter may request the draft of the restructuring report (Sanierungsgutachten) from the company, which however is only available in German. At the second bondholders’ meeting on 6 May 2015 in Walldorf, the management will report in detail on the restructuring concept and the current state of the restructuring.