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