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Home BUSINESSTalvivaara submit corporate restructuring programme
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Wed, 01 Oct, 2014 12:08:48 AM
FTimes Report, October 1
 
Talvivaara mining area.File photo Photo – Str-Lehtikuva.
The nickel mining company Talvivaara on Monday announced that it handed over the draft corporate restructuring programme for both Talvivaara Mining Company Plc and its subsidiary Talvivaara Sotkamo Ltd to the District Court of Espoo.
 
In a release, the company said business operations of both Talvivaara and Talvivaara Sotkamo have proven viable during the corporate reorganisation proceedings and it was possible to make the mining operations in Sotkamo profitable. 
 
However, continuation of the business operations will require that new financing be obtained, said Talvivaara.
 
The restructuring programme proposes sale of all of Talvivaara Sotkamo’s business operations through a so-called realisation restructuring process to a new company established by Talvivaara (“NewCo”).  In the same connection, the existing product streaming and product sale and purchase agreements in Talvivaara Sotkamo’s name would be transferred on terms to be separately negotiated by NewCo. The purchase price received by Talvivaara Sotkamo would be used in full to pay Talvivaara Sotkamo’s restructuring debts.
 
Minister of Economic Affairs, Jan Vapaavuori spoke on Talvivaara in Helsinki on Tuesday.Photo – Lehtikuva.
Meanwhile, the Ministry of Employment and the Economy in a release said, the state will not rule out the possibility of participation in Talvivaara’s market-based financing. The participation of the government however requires that a new industrial or other stable actor who brings additional know-how, resources and credibility comes along.
 
According to Minister of Economic Affairs Jan Vapaavuori, the overall interests of the society would be that Talvivaara continues with mining operations in an environmentally sustainable manner.
 
The news agency STT reported that the company’s Chief Shop Steward Jukka Vetola and Labour Inspector Tero Pulkkinen have welcomed the news of debt-cut proposal.
 
The two consider the option of filing for bankruptcy not surprising, as it has already been contemplated before. However, according to the two, the indication was that the company would get more time.
 
“These are ideal work places. The stone is here and cannot be moved elsewhere. In terms of regional politics, this issue is a big one which should be considered by the state. We do not expect miracles from the state but support to arrange financing.”
 
 
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