Dalekovod notes that the economic value of the settlement amounts to approx. HRK 70m. Taking this into account, the company would operate with a net debt / T12 EBITDA of 4.33 (compared to current 5.31).

Dalekovod published a document on the Zagreb Stock Exchange announcing that they have entered into a settlement with the largest individual creditor of the Pre-Bankruptcy Settlement HETA Asset Resolution on the regulation of relations from three leasing contracts, concluded in 2008, on basis of which HETA is the exclusive creditor of the property, galvanizing plant in Dugo Selo.

The settlement covers a financial debt of almost HRK 100m, which is the amount of approximately a third of the total financial debt of Dalekovod d.d. which has an impact on cash flow according to the pre-bankruptcy settlement.

Galvanizing plant has been operating on the market for a long time, where, in addition to operations for the needs of the Group, it performed about 50% of its operations. The Group notes that in the first five months of 2020 Cinčaonica usluge had operating revenue of HRK 17.8m, EBITDA of HRK -1.7m and EBT of HRK -1.9m.

HETA takes over the lease assets and sells them to the end customer, NFS Cink member of the Czech Signum Group, which already includes 9 galvanizing plants in the Czech Republic, Slovakia and Croatia, and the production of metal structures, and which will continue to perform corrosion protection in the galvanizing plant in Dugo Selo with employees who were part of the Group.

Dalekovod notes that the economic value of the settlement amounts to approx. HRK 70m, resulting in a reduction of the Group’s total financial debt of HRK 61m and a predictable cash receipt of HRK 8m. Taking this into account, the company would operate with a net debt / T12 EBITDA of 4.33 (compared to current 5.31).

The Group adds that the settlement significantly improves Dalekovod’s financial position, reduces total balance sheet debt, significantly improves cash flow, which was very negatively affected by the repayment of liabilities under this lease to HETA, which in the next two and a half years accounted for about 2/3 of all repayment under the concluded pre-bankruptcy settlement.