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MLM Foundry Signs Debt Restructuring Deal with Bad Bank

Ljubljana, 08 April (STA) - The MLM foundry has signed a master debt restructuring deal with the Bank Asset Management Company (BAMC) which includes conversion of a part of claims transferred to the bad bank into equity. MLM and BAMC believe that the deal is a good basis for successful future operation.

The details of the contract signed by BAMC executive director Christopher Gwilliam, DUTB asset management director Janez Škrubej and MLM chairman Dušan Goršek have not been revealed.

Besides BAMC, the conversion of a part of non-performing assets has been agreed on by banks Probanka and Abanka. The three institutions are the biggest owners and creditors of the Maribor-based foundry.

Following the March recapitalisation of MLM, Probanka owns a 39% stake, DUTB 34%, Abanka 23%, and the NKBM bank 3% in the company, according to MLM's website.

Janne Harjunpää, who is responsible for management of claims in DUTB, said at Tuesday's signing that the deal provided a good basis for the further development of MLM and operational restructuring.

BAMC will be the leading owner and will oversee the managing of the company, and will disinvest its investment in the company "at the right moment", he added.

Goršek meanwhile assessed that the company, which currently employs 450 people, will not have to make lay-offs. MLM is planning to increase annual revenues from the current EUR 42m to EUR 62m in 2018.

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