REC Silicon – Claims under indemnity loans
Moses Lake, WA, December 20th 2019: As set out in the 2018 Financial statements (the "FS") of REC Silicon ASA (the "Company"), the Company has taken out an indemnification loan from Nordea related to the bankruptcy of a former subsidiary in 2012. In the FS, the Company advised that "at December 31, 2018, the indemnification loan is NOK 200.0 million (USD 23.0 million) and can only be called if certain conditions are met. Once the loan is called, outstanding amounts will bear interest at a rate of NIBOR plus 0.5 percent. Although the indemnification loan was callable in February 2016, this loan has not been called and the timing of when it will be called is uncertain".
The Company has now received a claim of NOK 150 million from Nordea under the indemnification loan. The relevant bankruptcy estates have not yet been concluded, and the amount of loss suffered by Nordea as a result of the bankruptcy may therefore not be calculated at this time. According to the claim letter from Nordea, Nordea's current claim for NOK 150 million is based on an assumption from Nordea that its loss will exceed said amount when the estates are concluded.
The Company will therefore, together with its advisors, consider the claim and its basis, and revert with further information when it has reached its conclusions.
For further information, please contact:
James A. May II, Chief Financial Officer
Phone:
Email:
Nils O. Kjerstad IR Contact
Phone:
Email:
About REC Silicon: REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gas to the solar and electronics industries worldwide. We combine 30 years of experience and proprietary technology with the needs of our customers, with annual production capacity of more than 20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock Exchange (ticker: REC), the company is headquartered in Fornebu, Norway.
For more information, go to:
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
