Conditional debt forgiveness agreed on by Vaahto Group and its major creditors has become binding upon the creditors
VAAHTO GROUP PLC OYJ STOCK EXCHANGE RELEASE 19 FEBRUARY 2015 at 15:15
CONDITIONAL DEBT FORGIVENESS AGREED ON BY VAAHTO GROUP AND ITS MAJOR CREDITORS HAS BECOME BINDING UPON THE CREDITORS
Vaahto Group Plc Oyj has on 16 February 2015 disclosed an arrangement made with its major creditors, the purpose of which is the strengthening of the company’s financial standing and the securing of the continuance of the company’s operations. At the same time, the company disclosed issuing 10,000,000 new shares at a subscription price of EUR 0.25 per share in a targeted share issue.
As disclosed previously, the creditors have by the agreement undertaken to forgive the company’s debts in an amount of EUR 3,850,000, to convert the debts to subordinated capital loans in an amount of EUR 1,175,000 and to grant the company a repayment holiday on such creditors’ receivables until 30 June 2016, each on the condition that a EUR 2,500,000 equity injection is paid to the company’s bank account.
In accordance with the agreement, an equity injection of EUR 2,500,000 has been paid to the bank account of Vaahto Group on 18 February 2015, and thus the above-mentioned conditional undertakings of the creditors have become binding upon the creditors as of 18 February 2015. On 19 February 2015, the debt forgiveness has entered into force as regards EUR 3,450,000 and the conversion of debts to subordinated capital loans as regards EUR 900,000. The remaining 400,000 of the debt forgiveness and the remaining 275,000 of the conversion of debts to subordinated capital loans will enter into force upon certain insurance policies being transferred to one of the creditors.
In Lahti 19.2.2015
VAAHTO GROUP PLC OYJ
Board of Directors
Reijo Järvinen, Chairman of the Board of Directors Vaahto Group Plc Oyj +358 400 715968