Annual Report 2007 - Muehlhan AG
Annual Report 2007 - Muehlhan AG
Annual Report 2007 - Muehlhan AG
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64<br />
the development of the Group’s pension accruals is analyzed as follows:<br />
in kEur <strong>2007</strong> 2006<br />
at 1 January 519 520<br />
interest with respect to earned pension entitlements 17 18<br />
benefits paid -36 -33<br />
addition of defined-contribution plans through initial consolidation 93 0<br />
increase in accruals – contributory pension plans 52 14<br />
At 31 December 645 519<br />
it is assumed that pension payments in 2008 will correspond to the level of the previous year. actuarial gains or losses<br />
were not set off since they did not exceed the 10% corridor.<br />
11. FINANCIAL LIABILITIES<br />
financial liabilities are analyzed by maturities as follows:<br />
in kEur <strong>2007</strong> Time to maturity 2006 Time to maturity<br />
Total 0-1 year<br />
1-5<br />
years<br />
> 5<br />
years Total 0-1 year<br />
loans 34,527 0 7,000 27,527 34,401 0 0 34,401<br />
liabilities to banks 1,984 1,984 0 0 233 233 0 0<br />
Total 36,511 1,984 7,000 27,527 34,634 233 0 34,401<br />
on 28 March 2006, the parent company issued a Eur 35 million loan. the loan is not collaterized and runs until 2016.<br />
repayment will be in five equal annual installments as from 2012. the loan carries interest at 5.77% payable every six<br />
months in arrears. the prudential insurance Company of america subscribed the loan. the transaction expenses of the<br />
loan amounted to nearly Eur 1.2 million. the loan is stated at amortized costs after taking into account the transaction<br />
expenses. all bank liabilities existing at the time of the issuance of the loan were repaid as a consequence of the inflow of<br />
funds. in the next four years, the loan will lead to annual outflows of funds of Eur 2,020 thousand, in 2012 to an outflow<br />
of Eur 8,818 thousand, and thereafter Eur 31,231 thousand. two performance-linked requirements of the loan could<br />
not be met due to weak profitability. an “amendment” was agreed with the lender in Mid-March 2008, according to<br />
which he waives the termination right to which he is entitled as a result of the violation of the bond terms. in return, in<br />
december <strong>2007</strong> we pledged half of the Eur 10.0 million amount for the expected term of 14 or 26 months. an interest<br />
adjustment could be avoided through the agreement of a one-time payment of Eur 120 thousand. to our knowledge,<br />
no active market exists for this loan, so that the fair value approximates the book value as far as we know. the liquidity<br />
situation of the Group is hereby not endangered (see also note no. 3).<br />
1-5<br />
years<br />
> 5<br />
years