Luxembourg, 1 December 2012 – In the past few years, Transcom’s French subsidiary, Transcom WorldWide (France) S.A.S., has executed several restructuring programs, and its management has investigated numerous different possibilities to turn the loss-making French operations around. A possible disposal of French operations – to a third party with the capacity to attract new business volumes and secure jobs – has also been explored. These efforts have so far been unsuccessful. In 2012, Transcom WorldWide (France) S.A.S. will generate an operating loss amounting to approximately €5.5 million, with a €12 million negative cash flow impact.
A petition for the commencement of safeguard proceedings for Transcom’s French subsidiary – filed by the management of the subsidiary, Transcom WorldWide (France) S.A.S. – has been approved. Safeguard proceedings allow companies facing difficulties, but which are not yet insolvent, to pursue a restructuring under the umbrella of a payment and enforcement moratorium. The main goal of safeguard proceedings is to preserve continuity of business and employment.
Unless Transcom WorldWide (France) S.A.S. has proven, by the end of February 2013, that it will become profitable by the end of 2013, Transcom WorldWide S.A. will not continue financing the French subsidiary’s loss-making operations beyond 1 March 2013.
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For further information, please contact:
Johan Eriksson, President and CEO +46 70 776 80 22
Stefan Pettersson, Head of Investor Relations +46 70 776 80 88