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Creditors Agree EUR 208M Debt-to-Equity Conversion for Cimos

Koper/Ljubljana, 03 November (STA) - The key creditors of Cimos, including the Bank Assets Management Company (BAMC), have submitted to the the Koper District Court a restructuring plan for the car industry supplier, which includes a debt-to-equity conversion worth EUR 208m and EUR 40m in liquidity funds. The debt restructuring is to be followed by privatisation.

The court mandated debt restructuring for what is one of Slovenia's biggest companies was demanded in June this year by state-owned creditor banks, owed a total of EUR 183.7m or over two-thirds of Cimos's total liabilities.

BAMC, the bad bank, said Monday that the plan provides the needed capital resources for the company and pointed out that the creditors behind it have the majority in Cimos necessary to secure its implementation.

In March 2015, when the debt restructuring is expected to be completed, the key creditors, among them the World Bank's International Finance Corporation and the state, will enter the company's ownership.

The state and BAMC will be the biggest owners, but BAMC's Janne Harjunpää announced that privatisation proceedings will be launched immediately thereafter.

Cimos chairman Janez Gradišek described the plan as realistic and as allowing the company to focus on its core activities.

"The financial restructuring also allows us to carry out the operative restructuring of Cimos, which will establish firm foundations for the future of Cimos," BAMC quoted the boss of the company.

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