COMMISSION DECISION (EU) 2016/289
of 8 June 2015
on the State aid SA.37792 (2014/C) (ex 2013/N) which Slovenia is planning to implement for the Cimos Group
(notified under document C(2015) 3770)
(Only the English text is authentic)
(Text with EEA relevance)
1.
PROCEDURE
2.
DESCRIPTION
2.1. BENEFICIARY
The organisational structure of Cimos
Shareholder |
Share (%) |
Control |
Modra Zavarovalnica d.d. |
21,4 |
Public |
Banka Koper d.d. |
20,4 |
Private |
Cimos d.d. |
13,3 |
Private |
Kovinoplastika Lož d.d. |
13,1 |
Private |
D.S.U. d.o.o. |
6,9 |
Public |
Others |
24,9 |
Public and private |
Source: Restructuring plan |
(EUR million) |
||||
|
2013 |
2012 |
2011 |
2010 |
Sales revenue |
409,2 |
445,6 |
480,7 |
444,8 |
Net result |
– 122,0 |
– 97,9 |
3,4 |
4,1 |
Net assets |
– 103,3 |
22,5 |
139,3 |
133,1 |
Debt |
610,4 |
569,3 |
581,6 |
594,2 |
Current ratio |
0,5 |
0,54 |
0,85 |
0,85 |
Source: Consolidated financial statements for the years: 2013, 2012, 2011, and 2010. |
2.2. DEBT RESTRUCTURING PROCESS
2.3. THE NOTIFIED MEASURES
(EUR million) |
||||
Creditor's name |
Principal outstanding |
Debt for equity conversion |
Haircut |
Remaining debt |
Measure 1 |
||||
Ministry of Finance |
36,2 |
(21,7) |
— |
14,5 |
Measure 2 |
||||
Republic of Slovenia |
39,0 |
(23,4) |
— |
15,6 |
Measure 3 |
||||
DUTB |
65,8 |
(39,5) |
— |
26,3 |
SID Banka |
47,5 |
(1,0) |
(27,5) |
19 |
Banka Celje d.d. |
42,4 |
(25,5) |
— |
16,9 |
NLB |
26,8 |
(16,1) |
— |
10,7 |
Abanka Vipa d.d. |
23,2 |
(13,9) |
— |
9,3 |
International Finance Corporation (IFC) |
22,1 |
(13,3) |
— |
8,8 |
Gorenjska Banka d.d. |
15,5 |
(9,3) |
— |
6,2 |
NKBM |
5,7 |
(3,4) |
— |
2,3 |
Total Measure 3 |
249 |
(122) |
(27,5) |
99,5 |
Source: Restructuring plan. |
3.
THE RESTRUCTURING PLAN
3.1. FINANCIAL RESTRUCTURING
3.2. OPERATIONAL RESTRUCTURING
3.3. OVERVIEW OF THE RESTRUCTURING COSTS AND SOURCES OF FINANCING
(EUR million) |
|||
Restructuring cost item |
Source of financing |
||
Trade creditor repayment |
113,1 |
Declared own contribution |
329,0 |
Past and 2014 trading losses |
65,2 |
||
Capital expenditure |
18,3 |
Notified State aid (rescue aid converted to equity) |
21,7 |
Repayment of customer funded capex |
9,8 |
||
Loss on disposal of Litostroj Power |
17,5 |
|
|
Loss on disposal of Cimos Titan |
2,5 |
|
|
Repayment of debt relating to Litostroj Power |
21,4 |
|
|
Severance payments |
8,4 |
|
|
Restructuring advisor fees |
3,0 |
|
|
Lease penalty interest and default repayment |
2,3 |
|
|
Limited equity and minimum cash headroom |
49,0 |
|
|
Interest on rescue aid |
1,2 |
|
|
Repayment of New Money |
39,0 |
|
|
Total costs |
350,7 |
Total sources of financing |
350,7 |
Source: Restructuring plan |
3.4. RESTORATION OF LONG TERM VIABILITY
(EUR million) |
||||||
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
Net sales |
370,4 |
358,1 |
327,2 |
321,8 |
316,0 |
345,0 |
EBIT |
– 7,7 |
10,1 |
10,7 |
11,6 |
12,1 |
18,8 |
Net profit/loss |
– 77,8 |
2,1 |
2,9 |
4,2 |
5,0 |
11,1 |
Operating cash flow |
2,9 |
19,0 |
32,1 |
40,5 |
34,1 |
27,6 |
Equity |
– 155,6 |
53,2 |
56,2 |
60,4 |
65,4 |
76,4 |
Return on capital |
— |
3,9 % |
5,2 % |
7,0 % |
7,6 % |
14,5 % |
Source: Restructuring plan. |
3.5. COMPENSATORY MEASURES
|
2011 |
2012 |
2013 |
|||
|
Share in Cimos's revenue (%) |
Gross profit, EUR m |
Share in Cimos's revenue (%) |
Gross profit, EUR m |
Share in Cimos's revenue (%) |
Gross profit, EUR m |
[…] |
1,1 |
2,3 |
1,0 |
1,5 |
1,0 |
1,2 |
[…] |
0,9 |
0,9 |
0,8 |
0,8 |
1,0 |
1,0 |
[…] |
1,6 |
1,9 |
1,4 |
1,5 |
2,0 |
2,2 |
Total core business |
3,6 |
5,1 |
3,2 |
3,8 |
4,0 |
4,4 |
Agriculture |
0,9 |
1,5 |
1,2 |
2,7 |
0,9 |
1,2 |
Energy |
11,4 |
22,6 |
12,2 |
28,1 |
9,7 |
14,4 |
Machine |
5,0 |
5,3 |
6,8 |
6,6 |
8,5 |
6,3 |
Total non-core business |
17,3 |
29,4 |
20,2 |
37,4 |
19,1 |
21,9 |
Source: Reply to the request for information from 30 January 2015. |
3.6. THE OPENING DECISION
4.
COMMENTS FROM SLOVENIA
5.
COMMENTS FROM INTERESTED PARTY
6.
OTHER COMMENTS
7.
COMMENTS FROM SLOVENIA ON THE OBSERVATIONS OF INTERESTED PARTIES AND OTHER COMMENTS
8.
ASSESSMENT OF THE AID
8.1. EXISTENCE OF STATE AID
8.2. LEGALITY OF STATE AID
8.3. COMPATIBILITY OF STATE AID
8.4. FIRM IN DIFFICULTY
8.5. THE ‘ONE TIME, LAST TIME’ PRINCIPLE
8.6. RESTORATION OF LONG-TERM VIABILITY
8.7. AVOIDANCE OF UNDUE DISTORTIONS OF COMPETITION (COMPENSATORY MEASURES)
8.8. AID LIMITED TO THE MINIMUM, OWN CONTRIBUTION
Source |
EUR million |
New Money Facility |
39 |
Cimos funded capex |
8,5 |
Customer funded capex |
9,8 |
Consideration for the sale of Energy Division (Litostroj Power) |
18,0 |
Debt for equity conversion and non-accrual of interest on bank debt (without SID) |
120,2 |
Non-accrual of interest on loans |
5,3 |
Haircut of suppliers |
21,8 |
Haircut of lessor |
6 |
Haircut of bank debt |
8,3 |
Debt for equity conversion and haircut of SID's debt |
28,5 |
Debt for equity conversion of State guarantees |
23,4 |
Non-accrual of interest on the rescue aid |
1,2 |
Cimos contribution to funding of supplier compromise |
39,0 |
Total declared own contribution |
329,0 |
Source: Restructuring plan. |