Aspocomp Group Plc
ASPOCOMP PARTLY WRITES OFF PROVISION RELATED TO THE BANKCRUCPY OF ITS FORMER FRENCH SUBSIDIARY
Espoo, Finland, 2013-07-05 08:00 CEST (GLOBE NEWSWIRE) —
Aspocomp Group Plc, Company Announcement, July 5, 2013 at 9:00 a.m.
Aspocomp writes off approximately EUR 0.9 million of its former French subsidiary’s bankruptcy-related provision for closure expenses. The provision write-off will have an equal positive impact on the 2013 second quarter profit after financial items.
The provision is written off as according to the French legislation, possibility to file new claims related to the case expired in June 2013. According to information received by Aspocomp no new claims have been filed and therefore the related provision can be written off.
Aspocomp’s French subsidiary went bankrupt in 2002. As a result of disputes related to the bankruptcy the French Supreme Court finally ordered the company to pay approximately EUR 11 million to former employees of the subsidiary. The company made the payment in 2007. Between January 2009 and September 2012 the Labor Court of Evreux and the Court Appeal of Rouen, France, handed down several rulings whereby the company is obligated to pay approximately EUR 0.7 million plus legal interest to 20 former employees of the subsidiary.
The company has entered into settlement agreements with seven of the aforementioned 20 former employees. In addition, the company has appealed to the Helsinki Court of Appeal about the Helsinki District Court’s judgment in which the decision of Court of Appeal of Rouen concerning the 13 former employees was confirmed to be enforceable in Finland. Aspocomp considers the decision to be against Finnish public policy and demands that it will not be recognized.
According to the company’s current view, risks related to its former, bankrupt French subsidiary are limited to the aforementioned open appeal in relation to the 13 former workers’ compensation claims. The risk is estimated to be about EUR 0.8 million, including possible interest and legal costs of the opposing party. There is a provision equivalent to the risk in the company’s balance sheet and therefore there will be no profit impact should the risk realize.
There are no other provisions for closure expenses in Aspocomp’s balance sheet.
For further information, please contact Sami Holopainen, CEO,
tel. +358 20 775 6860, sami.holopainen(at)aspocomp.com.
ASPOCOMP GROUP PLC
Aspocomp – a PCB technology company
Aspocomp develops and sells PCB manufacturing services. Our seasoned professionals help customers to create the most optimal PCB design, both in terms of performance and cost. Our trimmed production lines materialize the most challenging designs within the shortest lead-times of the industry. Our volume supply services offer cost efficient access to all PCB technologies.
Printed circuit board (PCB) is the principal interconnection method of electronic devices. PCB’s are used for electrical interconnection and as a component assembly platform in most electronic applications. Aspocomp’s PCB’s are used in several applications i.a. telecommunication networks and devices, automotive electronics, security and medical systems, chip-set development and industrial automation. The value of global PCB market was roughly EUR 45 billion in 2012.