18 November 2016
Bergen Group ASA: Interim Report for Q3 2016
In Q3 2016, Bergen Group ASA had a turnover of NOK 56 million and a positive operating result before depreciation and write-downs of NOK 0.4 million.
The Group’s operational activities, performed by Bergen Group Services, maintain satisfactory turnover and a positive result.
The operative activities within the Group occur in the segment Services, where Bergen Group is the driving force. For the first three quarters of the year, this segment has had a total turnover of NOK 179 million and an operating profit before depreciation and impairment (EBITDA) of NOK 14 million.
CEO Hans Petter Eikeland is now looking forward to finalising an extensive restructuring and refinancing process.
“This process is resource intensive, which also characterises the consolidated figures for the Group in Q3. However, we experience very satisfactory progress for the various processes in the refinancing package, and maintain our goal of finalizing the entire extensive process before New Year”, Eikeland says.
The CEO refers to the fact that the Extraordinary General Meeting on Thursday 17 November 2016 gave their unanimous approval to all elements of the refinancing process that require formal clarification from the company’s shareholders. This entails acceptance for a private placement which will provide the company with gross proceeds of NOK 22 million. Behind the full subscription are the three main shareholders Brian Chang Holdings Limited, AS Flyfisk and Køhlergruppen AS, as well as senior executives. In total eight persons from the Group management and the management of Bergen Group Services contribute with in total NOK 7.5 million for this issue, including NOK 5 million from Eikeland Holding AS, of which is controlled by CEO Hans Petter Eikeland.
Additionally, the Extraordinary General Meeting decided to give the Board power of attorney to implement a following repair issue with gross proceeds up to NOK 5.3 million at the same subscription price (NOK 1.20) as what is offered for the private placement. The repair issue will be offered shareholders as of 17 November 2016, as listed in the VPS shareholder register as of21 November 2016. The Extraordinary General Meeting did also give power of attorney to the Board to enter into agreement of convertible loan up until EUR 1.8 million as part of the refinancing process.
“As per date, more than three quarters of the involved creditors have agreed to release 50 % of their receivables towards Bergen Group ASA. The positive and necessary approvals at the Extraordinary General Meeting enable us to finalise the process of establishing agreements with the remaining creditors”, Eikeland points out. This entails that total amount in the region of NOK 180 million is being released, of which will improve the Group's equity significantly.
Further, the extensive refinancing process includes a loan of NOK 20 million from the two main shareholders Brian Chang Holdings Limited and AS Flyfisk at favorable terms.