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

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sinGLE-Entity and GRoup manaGEmEnt REpoRt | EvEnts aFtER thE REpoRtinG pERiod
stage of the restructuring agreement III. This stage will in
part be financed through a bond issue by ALNO AG. In
this way, the existing accounts payable to banks will be
reduced to less than 10%.
<strong>The</strong> second stage involves increasing the sh<strong>are</strong> capital of
ALNO AG and must be decided by the Annual General
Meeting in August 2012. This capital increase is to be
effected through both cash and non-cash contributions.
<strong>The</strong> non-cash contribution will take the form of a "debt-toequity
swap" in which the loan receivables taken over by
old and new investors <strong>are</strong> paid in, insofar as they <strong>are</strong> not
financed through the aforementioned bond. Since the collateral
provided to date will be released through repayment
of the existing sums payable to banks, it can be used to
take out new loans in the future, insofar as it is not needed
for issuing the bond.
<strong>The</strong> Board of Management is already conducting specific
financial talks with banks which have not provided funding
to date. <strong>The</strong> liquidity provided by these new bank loans
will be used to finance the ALNO Group's planned growth,
especially in other countries. A funding commitment by
these new banks is scheduled to coincide with the conclusion
of restructuring agreement III.
<strong>The</strong> Group's factoring volume is to be further increased
by another EUR 15 million through the sale of accounts
receivable by ALNO AG.
In addition, the Board of Management is holding out the
option of applying for a guarantee furnished by the Land
government of Baden-Württemberg following the conclusion
of restructuring agreement III which would open up
further potential for financing.
In mid-May 2012, ALNO AG's Board of Management
obtained written, non-binding declarations of intent from
the main sh<strong>are</strong>holders, the main supplier Bauknecht Hausgeräte
GmbH and both old and new investors confirming
their support for the long-term capitalization and financing
concept outlined above. <strong>The</strong>se declarations of intent <strong>are</strong> to
be transformed into a binding restructuring agreement III
by mid-July 2012, together with the planned restructuring
contributions of the main syndicate banks.
update of the original reorganization assessment of
24 June 2010 by PricewaterhouseCoopers
PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft
("PwC") was retained in early 2010 to prep<strong>are</strong> a reorganization
assessment for the ALNO Group in accordance
with statement IDW S6 of the German Institute of Auditors.
In their assessment of 24 June 2010, PwC confirmed the
ALNO Group's prognosis as a going concern as long as
financing is assured in accordance with the restructuring
agreement I of 23 April 2010 and as long as the required
measures <strong>are</strong> implemented within the framework of the
corporate planning.
In spring 2011, PwC was requested to undertake an update
of their reorganization assessment for the ALNO Group. In
the updated reorganization assessment of 13 May 2011,
PwC found that the ALNO Group is fully financed so far as
could be established at that time and subject to certain
conditions, and that there were no changes as regards
the statements made in the reorganization assessment of
24 June 2010. However, PwC did point out that the ALNO
Group's restructuring would take longer than had been
planned in the previous year.
In November 2011, PwC was mandated to update their
reorganization assessment for the ALNO 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).