REC Silicon – Claims Under Indemnity Loans

CHANGCHUN, China, December. 27, 2019 /PVTIME/ -- 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.

SOURCE: REC Silicon

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