Finnish metal component maker Componenta files for debt restructuring

Componenta Oyj

01/09/2016 09:22

HELSINKI, Sept 1 (Reuters) - Finnish metal component maker 
Componenta  CTH1V.HE  is seeking debt restructuring after 
failing to get funding to cover mounting losses in its 
Netherlands subsidiary, it said on Thursday. 
    Componenta, which makes cast components for vehicle and 
machine manufacturers, said it was filing for restructuring for 
the Finnish parent company and Swedish subsidiaries and the 
Dutch subsidiary was filing for bankruptcy. 
    Its subsidiary in Turkey, Componenta Dokumculuk Ticaret 
 COMDO.IS , will continue operations after securing local 
financing. 
    Chief Executive Harri Suutari partly blamed weak demand from 
the mining sector for the problems. 
    "We've been hurt by weak market demand this year, but the 
main reason for (restructuring) is negative cash flow and 
continuing losses in the Dutch business," he told Reuters. 
    Componenta tried to boost profitability in the Dutch company 
by restructuring its production, but had failed to raise the 
necessary funding, Suutari added. 
    The Dutch business has accumulated losses of around 100 
million euros ($111.3 million) since Componenta acquired it in 
2004. 
    Shares in the company were down 39 percent at 0.232 euros by 
0752 GMT. 
($1 = 0.8982 euros) 
 
 (Reporting by Tuomas Forsell, editing by Jussi Rosendahl and 
Susan Thomas) 
 ((tuomas.forsell@thomsonreuters.com; +358968050242)) 
 
Keywords: COMPONENTA RESTRUCTURING/