The Proposal for the Restructuring Programme for Valoe Has Been Filed with North Savo District Court

Valoe Corporation        Inside Information         24 June 2024 at 21.00 (Finnish time)        

                                                
Valoe Corporation's (”Company” or “Valoe”) administrator, Mr Pekka Jaatinen, Attorney, filed a proposal for the restructuring programme for the Company with the North Savo District Court on 24 June 2024. The objective of the restructuring programme is to restore the Company's business, maintain its competitiveness in its industry and restructure the Company's debts only to the extent necessary to achieve the Company's restructuring objective.
Efforts have been made to build some flexibility into the restructuring programme by offering creditors the possibility to convert unsecured restructuring debt into shares in the Company. The remainder of the unsecured restructuring debt will be subject to a payment schedule that has been prepared in accordance with the Restructuring of Enterprises Act.

Main content of the restructuring programme proposal:

• To restore the Company's business, the amount of unsecured debts will be cut by 90%. However, the creditors have the right to convert the amount of the cut debt into shares in the Company instead of a cash payment.
• The non-preferred debts subject to conversion rights amount approximately to EUR 15.1 million. If all the non-preferred debts are converted into shares, the conversion right under the restructuring programme will significantly dilute the shareholder's ownership.
• The unsecured debts included in Valoe's restructuring programme amount approximately to EUR 15.14 million. EUR 500,000.00 of the Company's restructuring debts is secured by collateral and EUR 101,452.80 of the restructuring debts are secured by a business mortgage.
• The restructuring programme includes the right for non-preferential creditors to convert their claims into shares of the Company by giving a binding and irrevocable notice to the Company within two weeks of the approval of the restructuring programme.
• The Company's non-preferential creditors, excluding disputed debts and debts the basis or amount of which is conditional or unclear, have the right to convert the cut part of their claim into shares in the Company.
• By converting his claim into shares in the Company, a creditor has the opportunity to benefit from a possible increase in the share price and to sell his holdings on the stock exchange, thus settling his restructuring claim.
• The duration of the Company's payment schedule, based on the cash flow statement, is five years, starting in May 2025 and ending in November 2029. Both unsecured and secured debt are proposed to be repaid twice a year between 2025 and 2029. The payments will be made annually in May and November.
• The company has the right to early repayment of the restructuring debts under the conditions set out in the restructuring programme proposal.
• Interest is paid on the secured debt to cover the present value of the collateral, in arrears with each instalment. No interest is paid on unsecured debts.
  
  

We would like to thank the Company's creditors, administrator, customers, personnel and other stakeholders for their patience and good cooperation. We believe that the solutions proposed in the restructuring programme proposal will enable us to achieve the best possible outcome for all parties involved. The restructuring, together with the cost reductions and several other operational measures already made, would improve Valoe's chances of securing long-term financing. The Company requires new financing to develop and grow its business. Valoe aims to achieve a significant position as a supplier of solar energy applications for, inter alia, vehicles and portable electronic equipment.

In Mikkeli, 24 June 2024
Valoe Corporation

Board of Directors

For more information: Iikka Savisalo
President and CEO, Valoe Corporation
Tel. +358 40 521 6082, email: [email protected]

Distribution:
NASDAQ OMX, Helsinki
Main media
www.valoe.com

Valoe Corporation designs, manufacturers, and sells solar power application projects, especially for vehicles and electronics. Valoe's applications are based on the company's own back contact technology and IBC solar cells manufactured at the Company's cell factory in Lithuania. Valoe is headquartered in Mikkeli, Finland, with production facilities in Juva, Finland, and Vilnius, Lithuania.