THE COURT APPROVED THE CONDITIONAL SETTLEMENT BETWEEN EB'S, ELEKTROBIT CORPORATION, SUBSIDIARY, ELEKTROBIT INC. AND TERRESTAR CORPORATION AND CERTAIN OF ITS PREFERRED SHAREHOLDERS IN THE REORGANIZA...
(Thomson Reuters ONE) -
STOCK EXCHANGE RELEASE
Free for publication on August 25, 2012, at 0.15 a.m. (CEST+1)
THE COURT APPROVED THE CONDITIONAL SETTLEMENT BETWEEN EB'S, ELEKTROBIT
CORPORATION, SUBSIDIARY, ELEKTROBIT INC. AND TERRESTAR CORPORATION AND CERTAIN
OF ITS PREFERRED SHAREHOLDERS IN THE REORGANIZATION CASE OF TERRESTAR
CORPORATION
On August 24, 2012 U.S. time the United States Bankruptcy Court formally
approved TerreStar Corporation's motion for conditional settlement
("Settlement") with Elektrobit Inc., a subsidiary of EB, Elektrobit Corporation
("EB"), and TerreStar Corporation and certain of its preferred shareholders, of
the various disputes between them in TerreStar Corporation Chapter 11
reorganization cases. Further, the Bankruptcy Court approved the motion for new
financing to enable TerreStar Corporation to satisfy its obligations under the
approved Settlement. Based upon the Court approval, TerreStar Corporation is
obligated to pay to Elektrobit Inc., within two business days, an immediate cash
payment of USD 13.5 million (EUR 10.8 million as per exchange rate of August
23, 2012) (the "Settlement Payment") in full and final satisfaction of its claim
against TerreStar Corporation and in resolution of all disputes between EB and
the other parties in the TerreStar Corporation reorganization cases. Upon
receipt by Elektrobit Inc. of the Settlement Payment, certain mutual releases of
liability and other agreements set forth in the now approved Settlement will
become effective. EB understands that TerreStar Corporation does not presently
have funds available to make the Settlement Payment, but intends to use funds
that it expects to receive from the now-approved financing to satisfy its
obligations under that Settlement. The Settlement does not include the TerreStar
Networks Chapter 11 cases, which remain pending, and does not include any
distribution therefrom that may be available for EB.
The implications of the TerreStar Corporation and TerreStar Networks Chapter 11
cases on EB's profit, financial position and outlook can be finally determined
only when the outcome of both Chapter 11 cases is known, including all costs
related to collecting the receivables, and e.g. confirmed tax treatment. If
received by Elektrobit Inc., the Settlement Payment in the TerreStar Corporation
Chapter 11 cases alone, and without any further distribution from the TerreStar
Networks Chapter 11 cases, would result a positive effect of approximately USD
1.6 million (EUR 1.3 million as per exchange rate of August 23, 2012) on EB's
operating result and a positive effect on EB's cash flow of approximately USD
13 million (EUR 10.4 million as per exchange rate of August 23, 2012). If
TerreStar Corporation receives the approved new financing, the Settlement
Payment would be paid within two business days after the Settlement, i.e. during
the third year quarter of 2012.
EB expects that the Settlement Payment will not be made unless and until the
approved funding is actually received by TerreStar Corporation. In the event
that the funding is not received by TerreStar Corporation, nothing contained in
the Settlement shall be deemed to be a waiver of any claims or an admission of
liability by any party thereto and, in such event, all rights and remedies of
the parties shall be preserved.
The now approved Settlement does not include the TerreStar Networks Chapter 11
cases or any distribution therefrom that may be available for EB. Information on
the TerreStar Networks reorganization case and estimated distribution as well as
uncertainties regarding the amount of the receivables and collecting the
receivables are presented in the Company's Interim Report, published on August
7, 2012, under "Risks and Uncertainties" section.
On October 19, 2010, TerreStar Networks and certain other affiliates of
TerreStar Corporation and on February 16, 2011, the parent company TerreStar
Corporation filed voluntary petitions for reorganization under Chapter 11 of the
United States Bankruptcy Code to strengthen their financial position. EB has
asserted claims against each of the TerreStar entities in amounts totaling USD
27.9 million (EUR 22.3 million as per exchange rate of August 23, 2012). Due to
uncertainties related to the accounts receivable, EB booked an impairment of the
accounts receivable in the amount of EUR 8.3 million during the second half of
2010.
Information on TerreStar Networks' and TerreStar Corporation's reorganizations
are presented in the October 20 and 25, November 20 and December 30, 2010,
February 17, and November 18, 2011, June 21, and August 3, 2012 stock exchange
releases as well as in EB's interim reports and financial statement at
www.elektrobit.com.
Oulu, August 25, 2012
EB, Elektrobit Corporation
Jukka Harju
CEO
Further information:
Jukka Harju
CEO
Tel. + 358 40 344 5466
Päivi Timonen
CLO
Tel. +358 40 344 2794
Distribution:
NASDAQ OMX Helsinki
Principal media
EB, Elektrobit Corporation
EB creates advanced technology and turns it into enriching end-user experiences.
EB is specialized in demanding embedded software and hardware solutions for
wireless and automotive industries. The net sales for the year 2011 totaled MEUR
162.2. Elektrobit Corporation is listed on NASDAQ OMX Helsinki.
www.elektrobit.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Elektrobit Oyj via Thomson Reuters ONE
[HUG#1636279]
Unternehmensinformation / Kurzprofil:
Datum: 24.08.2012 - 23:15 Uhr
Sprache: Deutsch
News-ID 177546
Anzahl Zeichen: 6668
contact information:
Town:
Oulu
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 250 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"THE COURT APPROVED THE CONDITIONAL SETTLEMENT BETWEEN EB'S, ELEKTROBIT CORPORATION, SUBSIDIARY, ELEKTROBIT INC. AND TERRESTAR CORPORATION AND CERTAIN OF ITS PREFERRED SHAREHOLDERS IN THE REORGANIZA..."
steht unter der journalistisch-redaktionellen Verantwortung von
Elektrobit Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
