BRUSSELS, BELGIUM -- (Marketwire) -- 08/03/11 --
Brussels, August 3, 2011 - RHJ International ("RHJI") announces an agreement on the settlement of various outstanding amounts advanced to its insolvent subsidiary, Honsel AG, and its subsidiaries. The outstanding amounts include loans made under backstop and liquidity revolving credit facilities and amounts owed under factoring and sale and lease back arrangements. Under the terms of the settlement agreement and following repayment of certain amounts since the start of the insolvency proceedings, RHJI will ultimately recover around EUR 20.5 million out of an aggregate EUR 35.1 million which was outstanding at the time of Honsel AG's filing for insolvency on October 25, 2010.
The settlement agreement results from the completion of the sale of Honsel AG's business which was announced on August 1, 2011. On May 5, 2011, Honsel AG announced that a committee of creditors, appointed as part of the insolvency proceedings, had agreed to a sale of the business to Canadian metal products maker Martinrea and financial investor Anchorage. The settlement agreement provides for the settlement and partial repayment of the balances owed under all facilities made available to Honsel AG and its subsidiaries by RHJI, with any unpaid amounts of those balances being waived as part of the settlement, except for a factoring agreement with Tafime, SL, Honsel's Spanish subsidiary, under which RHJI will continue to purchase receivables up to an aggregate outstanding balance of EUR 2 million for a period of one month after completion of the sale of the Honsel AG business. Tafime, SL will repurchase any outstanding receivables under this factoring facility upon its termination.
About RHJ International:
RHJ International (Euronext: RHJI) is a limited liability company incorporated under the laws of Belgium, having its registered office at Avenue Louise 326, 1050 Brussels, Belgium. RHJI is transforming itself from a diversified industrial holding company into an active and dynamic financial services group. For further information visit: www.rhji.com.
This press release contains certain forward-looking statements concerning RHJI's operations, economic performance and financial condition. Such forward- looking statements are based on management's current expectations, estimates and projections and are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RHJI to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. RHJI has no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.
Full Press Release (PDF): http://hugin.info/135946/R/1535267/468109.pdf
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Source: RHJ International SA via Thomson Reuters ONE