The good prospects are based on the all-embracing ... - ALNO AG

Group. Since the operational and financial reorganization
concept was still in the planning stage, PwC was unable
to make any statement in their draft of 9 March 2012 as to
the ALNO Group's ability to be restructured and continued
as a going concern.
On the basis of this mandate, PwC was therefore requested
in late April 2012 to follow up on an existing analysis of
the short-term liquidity planning until mid-July 2012 and
verify the plausibility of the Group's liquidity planning up
to mid-2013.
In their "Plausibility verification of liquidity planning up to
mid-2013" dated 29 May 2012, PwC has taken account of
the risks identified when verifying the plausibility of corporate
planning in their conservative "Adjustment Case" which
also includes measures from the planned capitalization and
financial concept (refer to the section on implementation of
the long-term capitalization and financial concept).
In their statement on liquidity planning up to mid-2013,
PwC drew attention to the following points:
• <strong>The</strong> management's short-term liquidity planning shows
that the current agreements reached with suppliers on
deferral of payments and the stand-still agreement con-
cluded with the banks and a another financial partner
have assured the ALNO Group's liquidity until 20 July
2012.
• Very different stages have been reached as regards
implementation and negotiation of the various measures
contained in the capitalization and financial concept. This
consequently makes it impossible to assess the feasibility
of all the measures in the concept. However, PwC does
not consider the measures to be obviously infeasible.
• On the basis of the so-called "Adjustment Case", closing
all plants for the summer break between mid-July and
mid-August 2012 indicates that the Group's liquidity is
not assured and payments may be halted during this
period unless other internal and/or external measures <strong>are</strong>
taken. <strong>The</strong> management of ALNO AG is therefore already
conducting initial negotiations with a major supplier in
order to improve the company's liquidity.
ConsoLidatEd FinanCiaL statEmEnts | EvEnts aFtER thE CLosinG datE
• Subject to the assumptions made and provided that a
liquidity buffer of at least EUR 5.0 million is permanently
maintained, the company's liquidity is assured for the
period thereafter, i.e. from September 2012 to the end
of June 2013.
In addition, PwC also drew attention to the following essen-
tial assumptions and risks in the liquidity planning up to
June 2013:
• <strong>The</strong> financial concept must be implemented without fail
despite the risks associated with the feasibility of indi-
vidual measures. At the time of making the statement,
investors have only issued declarations of intent which
have still to be checked in legal and financial terms. All
other measures <strong>are</strong> under negotiation or in planning.
• <strong>The</strong> possibility that the measures will not be implemented
in <strong>good</strong> time to assure the ALNO Group's further liquid-
ity constitutes a risk. <strong>The</strong> most important and majority
of measures must therefore be implemented without fail
before the agreements on deferral of payments and the
stand-still agreement expire on 20 July 2012, as considerably
higher liquidity will be required as from the end
of July 2012 due to the plants' summer break and this
higher liquidity cannot be covered without the planned
inflows from the financial concept.
• Some of the planned but hitherto postponed investments
will have to be made in the second half of 2012.
• <strong>The</strong> relationship or situation prevailing with domestic
credit insurers and suppliers is strained. <strong>The</strong> liquidity
planning is <strong>based</strong> on the assumption that both will not
introduce terms of payment which <strong>are</strong> less advantageous
for the company than those at present or planned.
<strong>The</strong> Board of Management of ALNO AG has in the meantime
taken further steps to specify and implement the
capitalization and financial concept in more detail. Among
other things, these include negotiations with the financing
banks over repayment of the existing loans and credit lines,
as well as negotiations with new financial partners to obtain
fresh funds. <strong>The</strong> negotiations with sh<strong>are</strong>holders from whom
major restructuring contributions <strong>are</strong> expected under the
capitalization and financial concept have for the most part
been concluded.
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