STROMSDAL CORPORATION
STOCK EXCHANGE RELEASE
27 November 2008 at 14.05 (Finnish time)
STROMSDAL CORPORATION'S LETTER OF INTENT REGARDING A MAJOR CORPORATE AND
FINANCIAL RESTRUCTURING HAS FAILED AND THE BOARD OF DIRECTORS HAS DECIDED TO
FILE FOR BANKRUPTCY
Stromsdal has this morning received information from Primaca Partners Oy that
the EUR 5 million equity injection which was a part of the signed and published
Letter of Intent (LOI), dated October 30, 2008, has failed dispate continues
negotiations, due to the tight financial market situation. While the LOI
required that all parts of the LOI to be fulfilled and this is not now
happening, then there are no chance for the corporate and financial
restructuring to take place.
The sudden standstill of the world economy and the tightening of the financial
market have weakened the order intake. Recently published negative economic
indicators and dispite raw material prices coming down, the best estimate is,
that the company operative cash flow will not turn positive this year.
The company has also today received information from its main financiers that
they are not willing to input any more money. The company has also explored
other financing possibilities, but without success. Taking the above
circumstancies into account the Board of Directors has in its meeting today
decided on behalf of Stromsdal Corporation to file for bankruptcy in the city
court.
“We are very sorry that the world economy crisis and the itnernational finance
crisis distroyed our last years' huge financial and labour inputs done for
Stromsdal and developing its excellent packaging products, mill productivity and
sale improvements.
We are especially sorry for the employees and their families, City of Juankoski,
customers, shareholders and financiers and other stakeholders, but in the end
there were no other options.
We thank all those who have supported our business during all these years.”,
declares Company Management and the Board of Directors.
STROMSDAL CORPORATION
Board of Directors
For further information, please contact:
Harry Salonaho, Chairman of the Board of Directors
Tel. +358 50 442 5305
DISTRIBUTION
Helsinki Stock Exchange
Major media
www.stromsdal.com
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STROMSDAL is a forest based industry company and its board mill is located in
Juankoski, Finland. Stromsdal's sales and customer service network covers more
than 30 countries, mainly in Europe.
For demanding printing jobs Stromsdal offers its customers premium-quality
graphical boards - GraphiArt Duo and GraphiArt Pro - with excellent combination
of printability, brightness and stiffness. For food-packaging Stromsdal offers
its speciality environmentally friendly product - Tecta - a dispersion coated
barrier board, which is 100 per cent plastic-free, bio degradable and fully
recyclable.
Stromsdal's shares are listed on the Small Cap segment of the Helsinki Stock
Exchange (NASDAQ OMX Helsinki Ltd) under the company code STM1V.
STROMSDAL CORPORATION
Juankoskentie 7 A, P.O. Box 33, FI-73501 Juankoski
Tel. +358 20 710 9200, Fax. +358 20 710 9210
www.stromsdal.fi
STROMSDAL'S LETTER OF INTENT REG. A MAJOR CORP. FINANCIAL RESTRUCTURING FAILED AND THE BOARD OF DIRECTORS DECIDED TO FILE FOR BANKRUPTCY
| Source: Stromsdal