Re-capitalisation of Trimo approved by creditor banks

Trebnje, 26 May 2014 – At today's meeting of Trimo shareholders, the banks have unanimously approved a capital increase for Trimo, of both cash and non-cash contributions, to ensure capital adequacy and solvency of the company.

In accordance with the proposal by SID Bank, the creditor banks, which are the principal owners of Trimo, will convert between 13 and 20 million euros of bank loans into Trimo equity in the period between 3rd and 6th June, 2014. Notwithstanding the positive outcome of this meeting, Trimo faces working capital problems, even though current sales show that, despite challenging market conditions, customers trust the company and believe in its future.

After the re-capitalisation, if it is successful, the company’s equity capital is estimated to be at least 18 and up to 25 million euros. The management of Trimo welcomes the shareholders’ decision to re-capitalise the company as positive news for all the stakeholders, employees, business partners, and the local community.

In addition to the talks with owners on re-capitalisation of the company, in the last few weeks there have also been intensive discussions on an additional liquidity loan and release of guarantees. The latter are being released, although the process is too slow given the agreement reached and the needs of the company. The tight liquidity situation is making it very difficult to deliver the client orders.

Despite this difficult liquidity situation, Trimo sales show that clients and business partners trust the company. Today, Trimo has 5 per cent more orders, and 50 per cent more contracts for its 'key' - and most profitable line - the 'Qbiss One' modular façade system, than in the same period last year.

In addition to retaining existing customers, Trimo managed, despite the unenviable situation, to attract some new major clients, such as Philip Morris, Colgate, and the Amsterdam airport of 'Schiphol'. It also managed to win two projects abroad (in Spain and Slovakia) with its newest product, Qbiss Air, whose patented innovative core provides unrivalled energy efficiency compared with similar products.