Current Report No.: 8/2024
Referring to the current report No. 1/2024 of 16 January 2024 in which Boryszew S.A. (“Company”, “Boryszew”) advised of the possibility of restrictive optimisation or possible alternative actions involving selected assets of Boryszew Group, i.e. Boryszew Automotive Plastics Group (BAP Group) restrictive optimisation or possible alternative actions, the Issuer’s Management Board announces to have received on 19 April 2024 information that management boards of companies indirectly controlled by Boryszew S.A.: Boryszew Oberflächentechnik Deutschland GmbH and Boryszew Formenbau Deutschland GmbH 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 results from the deteriorating situation in obtaining new orders from major customers as well as the lower-than-expected performance of current contracts, which caused major decrease of sales. An additional factor negatively affecting the situation of the aforementioned entities involves high fixed costs in particular for salaries, 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 electroplated plastic components for vehicles and production of injection moulds, on which these companies generated a total of app. PLN 93.3 million in sales revenue in 2023 (PLN 84.1 million in 2022).
The operations of the two aforementioned companies, at the (EBITDA*) level in 2023 generated a loss of PLN 24.7 million (preliminary unaudited data), while for 2022 the loss was PLN 24.1 million.
Self-managed insolvency enables targeted and controlled restructuring, reduction of costs of winding down operations of unprofitable areas and satisfying creditors of these companies 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.
According to the information provided in the current report No. 5/2024 of 20.03.2024, the Issuer recognised a write-off in separate financial statements for 2023 on loans and trade receivables granted to the above-mentioned companies in the total amount of PLN 72.8 million, and a write-off in consolidated financial statements for 2023 on fixed assets in Boryszew Oberflächentechnik Deutschland GmbH in the total amount of PLN 42.5 million. The above transactions were of an accounting nature.
The Issuer’s Management Board will announce further significant stages of the above process in next reports.
*) EBITDA = operating profit plus depreciation and amortisation.
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.