Compulsory settlement of LIVAR confirmed by the District Court

The District Court in Ljubljana issued on October 18, 2021 Resolution on the confirmation of the compulsory settlement, which was proposed by the company’s largest creditors.

 The creditors holding 81.97% of all voting rights voted for the adoption of the compulsory settlement (whereby the required majority was at least 60% of all voting rights). As part of the alternative offer, 13 creditors chose the option of transferring receivables to the company in exchange for new company shares. Accordingly, the creditors transferred to the company receivables amounting to 5.102.676,16 EUR as well as paid-in new cash contributions amounting to 450.001,00 EUR. Once the Resolution on the confirmation of the compulsory settlement becomes final, all existing shares of the company will be invalidated and the creditors who transferred their receivables to the company will become new shareholders of the company.

 The District Court has previously dismissed the objections of four smaller creditors to the conduct of the compulsory settlement procedure. On September 21, 2021 Higher Court of Ljubljana rejected all the appeals of the same creditors against the decision of the District Court. Thus, rejection of all objections to the conduct of compulsory settlement procedure became final. Nevertheless, respective objections significantly and unnecessarily prolonged the compulsory settlement, which was initiated in January last year.

 The total sum of recognized ordinary and conditional receivables of creditors affected by the compulsory settlement amounts to 9.252.445,74 EUR. In accordance with the financial restructuring plan, the receivables will be repaid in the amount of 30% of nominal value (i.e. 2.775.733,72 EUR), within 6 years upon final confirmation of the compulsory settlement. During the period from the initiation of the compulsory settlement until the expiry of the time limit for their payment, a 1% interest rate shall apply.

By final confirmation of LIVAR’s compulsory settlement, financial restructuring of the largest foundry of iron castings in Slovenia will be successfully completed. The new financial and ownership structure will further strengthen the company’s competitiveness and strategic position, as well as establish a sound foundation for further business development of more than 65-years-long foundry tradition in Ivančna Gorica and Črnomelj.