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A-Tec Restructuring: Kovats Hands Over 25.1%

Published: October 28, 2010; 13:10 · (Vindobona)

The banks inject new money into the insolvent company; Kovats has no longer the majority. If restructuring fails, the banks have realization authority.

A-Tec Restructuring: Kovats Hands Over 25.1% / Picture: © Vindobona.org

Yesterday's meeting of the creditors' committee, without Kovat’s participation, concluded with an essential preliminary decision: restructuring gets underway. CEO Mirko Kovats and his partner, Christian Schmidt  hand over from 25.1% of the shares of A-Tec. With this, Kovats, who previously had a stake of 66%, loses the majority. Therefore decisions may be made without Kovats.

In exchange, the banks will make available new loans and guarantees to the insolvent mixed group. Furthermore, the dividends of Montanwerke Brixlegg, amounting 12 million euro will go from the banks to the Austrian Energy & Environment (AE&E), especially since AE&E needs fresh money and guarantees. The sum of 140 million euros (193 million dollars) is mentioned in this respect.

In case restructuring fails, the bank consortium receives realization authority for A-Tec. The consortium consists of 15 domestic and foreign banks; the largest creditors are Erste Bank and Raiffeisen International. The consortium will deliberate tomorrow in London.

A-Tec's liabilities amount to 677 million euro (937 million dollars). The company filed for bankruptcy last week and is now undergoing a restructuring process under self-administration. Creditors were last offered a rate of 30%.

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