Neo Industrial Oyj - Company Announcement

NEO INDUSTRIAL’S SUBSIDIARY AVILON ACCEPTED FOR RESTRUCTURING PROGRAM

Neo Industrial Plc               STOCK EXCHANGE RELEASE           June 28, 2012
at 2.00 pm 

The draft restructuring program of Avilon Ltd, subsidiary of Neo Industrial
Plc, has today been accepted by the District Court of Pirkanmaa. Total
repayment program lightens the debt structure and secures the future operation
of Avilon. 

According to the confirmed restructuring program the non-security debts of
Avilon Ltd will be cut down by EUR 10.3 million. The cutting will be entried as
income through income statement. Additionally, EUR 4.2 million of the debts
will be converted to the shares of Avilon, as fifteen debitors seized the
opportunity given by the restructuring program and converted their receivables
into the shares of Avilon Ltd. Totally, the debts of Avilon will be decreased
by EUR 14.5 million. Part of the remaining debt, EUR 8.1 million, will be
settled with a 10  year repayment program and EUR 5.2 million with the original
20 year repayment program. On Neo Industrial level the balance sheet will be
strengthened by EUR 12.6 million. 

- Investment project in antimicrobial fibre manufacturing will be carried out
in summer and the antimicrobial post-process can be set going in August. The
viscose lines will be relaunched after the necessary qualifications,
product-mix and financing have been secured, says Markku E. Rentto, Managing
Director of Neo Industrial. 

In spite of the corporate restructuring process, Avilon has actively continued
the research and development projects. The company has developed the PPV
Technology, enabling the usage of paper pulp in the viscose manufacture
process. Global marketing of this technology started in March 2012. An
investment of EUR 0.2 million, for modifying one of the post-processing lines
for the antimicrobial fibre manufacturing, will be finalized in summer. The
Carbamate Technology, enabling the viscose production without carbon
disulphine, is aimed to be commercialized in 2013. 

Avilon Ltd filed the application for corporate restructuring program with the
District Court of Pirkanmaa on September 7, 2011 as the liquidity situation
turned critical due to exceptionally strong fluctuation of raw-material and
viscose fiber prices. The corporate restructuring application was accepted on
October 5, 2011 and the draft restructuring program was filed on May 7, 2012. 



Neo Industrial Plc

Markku E. Rentto
Managing Director

Further information:
Markku E. Rentto,  Managing Director, tel. +358 207 209 191
Sari Tulander, Managing Director, Avilon, tel + 358 207 800 500


www.neoindustrial.fi


Neo Industrial's strategy is to invest mainly in industrial companies with
similar synergic benefits. The aim of investments is with active ownership to
develop the purchased companies and establish additional value. Returns are
sought through both dividend flow and an increase in value. Neo Industrial's
class B shares are listed on the NASDAQ OMX Helsinki Stock Exchange. 

Neo Industrial's business segments are Cable, Viscose Fibers and Single Family
Housing.