Current report no: 38/2021
Referring to the current report No. 32/2021 in which Boryszew S.A. (“Company”, “Boryszew”) informed of the possibility of restrictive optimisation or possible alternative actions involving the assets of Boryszew Group, i.e. Boryszew Automotive Plastics Group [BAP Group], the Issuer’s Management Board announces to have received on 12 October 2021 information that management boards of companies indirectly controlled by Boryszew S.A.: ICOS GmbH, THEYSOHN Kunststoff GmbH and THEYSOHN Formenbau GmbH (“ICOS Group”) decided on the same day to file for bankruptcy of these companies with relevant competent courts. According to the proposal, the application will seek insolvency under administration in accordance with German insolvency law.
According to the explanations received, the decision of ICOS Group results from the deteriorating situation in winning new orders from major customers as well as postponing the significant part of planned orders, which caused major decrease of sales. Additional factors with negative impact on the situation of the above mentioned companies include high fixed costs of ICOS Group companies and the current market situation associated with production limitations by major customers, caused by problems with the availability of semiconductors and unplanned increases in other operating costs etc., and in particular rapidly increasing costs of energy and raw materials. These circumstances, as per relevant assessment, prevent achieving the minimum satisfactory profitability of the business and the potential of achieving self-financing of the business by the companies mentioned above in a reasonable time perspective.
The above mentioned companies are involved in production of external plastic elements for vehicles (wheel arches, underbody shields, etc.) and production of large-size injection moulds, on which they generated sales revenue of PLN 72 million in H1 ‘2021 (PLN 129 million in 2020). The operations of ICOS Group Companies generated negative EBITDA in H1 ‘2021 ICOS of PLN 9 million, while for 2020 the loss amounted to PLN 36 million.
Having filed for bankruptcy, the Company intends to recognise a write-off on granted loans of PLN 87.3 million, which will be recognised in the unconsolidated result of Boryszew S.A. in 2021.
Self-managed insolvency enables targeted and controlled restructuring, reduction of costs of winding down operations of unprofitable areas and satisfying creditors of the ICOS Group at an optimum level. Furthermore, self-managed insolvency will enable an efficient and transparent conduct of the process towards all stakeholders, which will shorten the time of the process and will have a major impact on maintaining the reputation and image of the Group. The Issuer estimates that the costs of supporting the bankruptcy process will not exceed EUR 2.0 million.
The Management Board of Boryszew will announce further significant stages of the above process in next reports.
Legal attitude: Article 17 section 1 MAR – Confidential information.
Signatures:
Wojciech Kowalczyk – President of the Management Board
Translation from the original Polish version.
In the event of differences resulting from the translation, reference should be made to the official Polish version.