2011 annual report - ALNO

SINGLE-ENTITY AND GROUP MANAGEMENT REPORT | Events after the reporting period47In their statement on liquidity planning up to mid-2013,PwC drew attention to the following points:• Some of the planned but hitherto postponed investmentswill have to be made in the second half of 2012.• The management's short-term liquidity planning showsthat the current agreements reached with suppliers ondeferral of payments and the stand-still agreement concludedwith the banks and another financial partner haveassured the ALNO Group's liquidity until 20 July 2012.• Very different stages have been reached as regardsimplementation and negotiation of the various measurescontained in the capitalization and financial concept. Thisconsequently makes it impossible to assess the feasibilityof all the measures in the concept. However, PwC doesnot consider the measures to be obviously infeasible.• On the basis of the so-called "Adjustment Case", closingall plants for the summer break between mid-Julyand mid-August 2012 indicates that the Group's liquidityis not assured and payments may be halted during thisperiod unless other internal and/or external measures aretaken. The management of ALNO AG is therefore alreadyconducting initial negotiations with a major supplier inorder to improve the company's liquidity.• Subject to the assumptions made and provided that aliquidity buffer of at least EUR 5.0 million is permanentlymaintained, the company's liquidity is assured for theperiod thereafter, i.e. from September 2012 to the endof June 2013.In addition, PwC also drew attention to the following essentialassumptions and risks in the liquidity planning up toJune 2013:• The relationship or situation prevailing with domesticcredit insurers and suppliers is strained. The liquidityplanning is based on the assumption that both will notintroduce terms of payment which are less advantageousfor the company than those at present or planned.The Board of Management of ALNO AG has in the meantimetaken further steps to specify and implement thecapitalization and financial concept in more detail. Amongother things, these include negotiations with the financingbanks over repayment of the existing loans and credit lines,as well as negotiations with new financial partners to obtainfresh funds. The negotiations with shareholders from whommajor restructuring contributions are expected under thecapitalization and financial concept have for the most partbeen concluded.The continuation of business activities by ALNO AG andthe ALNO Group depends on timely implementation of theaforementioned measures in the capitalization and financialconcept as planned, and on whether or not the conditionsand assumptions made in the corporate planning are metor apply as planned. The Board of Management of ALNOAG presumes that the aforementioned measures in thecapitalization and financial concept will be implemented onschedule as planned, and that the conditions and assumptionsmade in the corporate planning will be met or applyas planned.• The financial concept must be implemented without faildespite the risks associated with the feasibility of individualmeasures. At the time of making the statement,investors have only issued declarations of intent whichhave still to be checked in legal and financial terms. Allother measures are under negotiation or in planning.• The possibility that the measures will not be implementedin good time to assure the ALNO Group's further liquidityconstitutes a risk. The most important and majorityof measures must therefore be implemented without failbefore the agreements on deferral of payments and thestand-still agreement expire on 20 July 2012, as considerablyhigher liquidity will be required as from the endof July 2012 due to the plants' summer break and thishigher liquidity cannot be covered without the plannedinflows from the financial concept.