Following our prior announcement regarding the fire incident at our Company’s Production facility in Xanthi and in order to inform in more details the investors, Sunlight Systems SA discloses the following:
Our Company is working with the competent authorities, expert teams and insurance companies in order to assess as quickly as possible the damage caused at a part of our plant, and in particular at the industrial battery production line and the building where this was operating. The affected production line has contributed to a significant proportion of the Company’s annual turnover and for this reason we are looking for alternatives to serve our customers and mitigate losses in our turnover, such as the purchase of existing products by third parties or the assignment of their manufacture to third parties in order to deliver them to our customers. The precise percentage of replacement of losses cannot currently be assessed. The production line of advanced technology batteries have not been substantially affected and has suffered only limited damage.
In addition, the affected facilities are adequately insured against all damage by a consortium of 8 insurance companies. This insurance covers both property damage and the loss of profit. However, since the exact time of the insurance reimbursement cannot yet be precisely determined, our Company intends to request from the consortium of insurance companies within the next few days an advance payment against the final insurance amount. The advance payment will be used together with own funds and available credit lines to meet the needs that will arise to restore as soon as possible operations at the affected part of the plant.
The full restoration schedule cannot yet be precisely defined, but we believe that it is feasible to re-initiate the production line in September 2018, with an horizon to fully restore production at the levels before the incident by no later than the first quarter 2019.
The Company also states that the forthcoming payment of the bond interest to the bondholders, scheduled for June 21, 2018, will be effected according to the Bond Loan Scheme.
Finally, we would like to publicly restate the explicit commitment of our shareholder, Olympia Group Holdings SA, to fully and by all means support to our Company (such as capital injection and / or providing guarantees for bank financing, etc.) if and when this is required.
As a consequence, and as a first step towards returning to normality, we hereby announce that we have today requested the Capital Market Commission to lift the suspension of the trading of our Company’s bonds on the Athens Stock Exchange. We now believe that, following the latest update, the reasons for the suspension no longer exist.
The short-term suspension of trading of the bonds approved by the Securities and Exchange Commission for the purposes of protecting the investors, that is formally described in the terms of the bond loan as a breach of a negative obligation, based on the available information , and the information from the representative of the bondholders that there is no such request from the bondholders, we consider that this will not have any effect on the Company.
We would like again to express our gratitude to the authorities, our shareholders, our people and the investors for their support, indirect or direct, that they provide to our Company and to assure that will do whatever is possible for the complete and fast repair of the damage and the re-initiation of our production.
For more information, please contact:
Treasurer & Investor Relations Officer
T +30 210 6245406 | M +30 693 6007729 | F +30 210 6245499 | Ε firstname.lastname@example.org