Newcap Holding
Valuation of Assets and Liabilities, and revised Expectations as to 2009 Result
Capinordic A/S / 01.02.2010 Dissemination of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Translation This text has been prepared in Danish and in English. In case of discrepancies, the Danish text will prevail. Company Announcement No. 8/2010 1 February 2010 Valuation of Assets and Liabilities, and revised Expectations as to 2009 Result Together with external consultants the Company's current management has reviewed the Group and the valuation of the Company's assets and liabilities. It shall be emphasized that due to a tight time frame it is a preliminary assessment with significant uncertainties. Monetar Pensionsförvaltning AB, Capinordic Asset Management AB, and Nordic Brokers Association AB We have requested a Nordic investment bank to conduct an assessment of the Group's Swedish activities. On a preliminary basis they have estimated the value of the above companies to DKK 507 million based upon a DCF analysis. In the event of a forced sale the estimated value is at the level of DKK 210 to 310 million. It should be noted that the assessment is produced within a very tight time frame. Capinordic Bank A/S During December 2009 the Danish FSA has conducted its ordinary examination of the bank. On January 21, 2010 the outcome of the examination was reported to the new management and Supervisory Board of the bank as well as the external auditors. The Danish FSA indicates a further need to write down loans and credits with approximately DKK 55 to 65 million. Based on the initiated, but not yet completed, review of the bank's loans and credit lines, the new management is in agreement with the indications of the Danish FSA, and management estimates that it will be necessary to write down another DKK 25 million. Accordingly, the aggregate write down of the bank's loans and credit lines amount to DKK 205 million. According to the bank's records, as per December 31, 2009, loans and credit lines amount to DKK 877 million. As to the bank's other assets the new management estimates on a preliminary basis that there will be a need to write down an amount in the area of DKK 160 million. Consequently, the estimated equity of the bank amounts to DKK 190 million, equivalent to a solvency above 10 percent. 4 material law suits have been initiated against the bank or are threatened summing up to a considerable amount. It is the assessment of the bank that the basis for all such law suits are inadequate or that they are unsubstantiated. Based on external evaluations it is at the date of this announcement questionable whether the plaintiffs will be successful in their actions. It is both management's and the Danish FSA's assessment that the bank's solvency requirements are exceeding the current solvency. Management is working to obtain the full picture of the bank's solvency requirements, including necessary supplements to the solvency due to ongoing litigations involving the bank as a party. On January 30, 2010, the Danish FSA has imposed upon the bank a deadline of February 3, 2010, for the bank to determine the bank's total solvency requirements, i.e. including solvent requirements arising out of litigations and to meet the solvency requirement worked out. The management of Capinordic A/S has taken steps in order to enable the bank to meet the solvency requirement. In addition to that the Board has decided to cease any lending business and to carry out a controlled settlement of all lending commitments of Capinordic Bank A/S. Thus, management is investigating the possibilities of capital infusion of up to DKK 200 million by having Capinordic A/S borrow and infuse such sums as new capital in the bank. It is being considered to alternatively to reduce the solvency requirements by providing guaranties against loss on certain loan portfolios in the bank, or by disposal over loan portfolios. The solution could be a combination of the above actions. Other assets in Capinordic A/S Management has initiated, but not yet completed, a review of the Group's other activities and assesses - at this stage - a need for write-downs in the area of DKK 125 million. Consequently, the Group's equity, exclusive of the bank and the Swedish operations, is estimated to be approximately DKK 100 million. We shall emphasize that we are still awaiting valuation reports etc. The Group's total equity is estimated to amount to DKK 815 million, which is under the assumption that the Group's assets and / or continuation thereof, in whole or in part. In case of a distressed disposal of assets of the Group the total equity is estimated at approximately half of the current equity on a going concern basis. Capinordic A/S Expectations as to 2009 Result Bases upon inter alia the preliminary examinations it is management's expectation that the result for 2009 will be negatively affected with an amount in the area of DKK 275 to 325 million. Thus, compared to previous announcements regarding the 2009 result, the result before tax will be negative in the area of DKK 1,100 - 1,200 million (including price adjustments and write-downs of loans and intangible assets). The result can still be affected by the ongoing examinations as well as the litigations involving the Group. Yours sincerely Henrik Vad Group CEO For further information please contact: Group CEO Henrik Vad +45 8816 3000, +45 2688 8900, info@capinordic.com News Source: NASDAQ OMX 01.02.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Capinordic A/S Denmark Phone: Fax: E-mail: Internet: ISIN: DK0010212570 WKN: End of News DGAP News-Service ---------------------------------------------------------------------------
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