Atorka Group hf.
Atorkas financial restructuring
Atorka Group hf. / Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Due to the negative impact that the credit crunch has had on Atorkas investments, the company has been working on financial restructuring in the last few months. Unlike many other Icelandic investment companies, all of Atorkas investments are in specialised manufacturing and service companies where most of them are operating in international growth markets. Atorka's holding is generally 20-40%, ensuring it can strongly influence the company strategy and management, both by close cooperation with the management teams or by having own representatives on the Board of Directors. It is clear that the value of Atorkas listed and unlisted investments has been going substantially down in the last few months, despite the fact that the operation of these companies are well satisfactory compared to the markets situation. Selling these investments now is not a good choice and a substantial increase in value consists in working strategically with Atorkas investments for the next few years. Upon creditors request, Atorka got KPMG London to evaluate Promens hf., Atorkas biggest single investment. In the outcome of KPMGs evaluation and the evaluation of the steering committee is solely looked at present market situation which is affected of temporary decrease in turnover. This outcome is different form Atorkas management and board evaluation of the companys investments in the long run. Due to above-mentioned mismatch in evaluation and to prepare comprehensive financial restructuring of the company, the Board of Directors of Atorka has decided to hire PriceWaterhouseCoopers in Denmark to work on total evaluation of all of Atorkas investments and presumptive evolvement in the coming years. This work is estimated to take 3-4 weeks and will be finished before the end of May. After this evaluation, Atorka will present its ideas of the companys future which will aim at securing creditors and shareholders' position as much as possible. News Source: NASDAQ OMX 07.05.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Atorka Group hf. Iceland Phone: Fax: E-mail: Internet: ISIN: IS0000000669 WKN: End of News DGAP News-Service ---------------------------------------------------------------------------
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