The shareholders’ general meeting has approved the financial restructuring plan
20 Julho 2020 - 3:00AM
PRESS RELEASE
The shareholders’ general meeting has
approved the financial restructuring plan
Implementation of the first tranche of
the New Money facility for an amount of c. €240
million
Paris (France), 20 July 2020
– Technicolor (Euronext Paris: TCH; OTCQX: TCLRY)
announces that, on the basis of information received, all
resolutions required to implement the financial restructuring plan
have been approved, with a very large majority, for the
shareholders’ general meeting to be held today at 10am. Also, as
planned, the first part of the new financing (the “New
Money”) was concluded on July 17th and will be made
available during the day, for an amount of c. €240 million (net of
costs and commissions) (the “Interim
Financing”).
Richard Moat, Chief Executive Officer of
Technicolor, stated:
“This approval of our shareholders and the
availability of the first part of the New Money are great
achievements and key milestones for the implementation of our
financial restructuring plan. We thank the shareholders for their
decisive support for the future of the Company. During the last
weeks, we have been working intensely to reach an agreement
providing a framework for the long-term sustainability of
Technicolor. During this time, we have also been dealing with the
Covid-19 crisis and our teams have been tireless in ensuring the
ongoing delivery of our high value-added services to our customers.
Today we are opening a new chapter, paving the way for bright
prospects for Technicolor. Our business units are well positioned
to take advantage of the increased demand for original content, the
strong increase in digital media consumption, and the significant
growth in residential broadband access and we will take advantage
of our position and be a stronger company for our employees and a
stronger partner to our suppliers and customers.”
Shareholders’ general
meeting:
As the shareholders’ general meeting is to
be held today behind closed doors, all votes have already been
received by the Company ahead of the meeting (voting closed on July
19th). All resolutions have been voted and details regarding quorum
and votes on each resolution will be published tonight, after
certification of the attendance sheet by the Office of the
shareholders’ meeting.
The next step in the Group’s financial
restructuring will be the approval of the accelerated financial
safeguard plan by the Paris Commercial Court. For this purpose, a
court hearing will be held on July 21st, in order to examine the
draft financial safeguard plan, which is to be approved on July
28th, 2020.
Implementation of the first tranche of
c. €240 million of the New Money:
The Interim Financing will be made available
today and will be allocated as follows:
- $110 million (net of costs and commissions)
allocated for the purpose of refinancing the $110 million bridge
loan due on 31 July 2020 by Technicolor USA Inc., pursuant to a New
York law term loan entered into between Technicolor USA Inc. and
the lenders of the New Money;
- €140 million (net of costs and commissions)
lent to Tech 6 (wholly-owned subsidiary of the Company) pursuant to
a New York law bond issue by Tech 6 subscribed by the lenders of
the New Money, for the purpose of financing the short term
liquidity needs of the Group’s companies (the “Euro
Tranche”). Upon receipt of the funds, Tech 6 will
concurrently loan the total amount of the Euro Tranche to the
Company, by way of an intragroup loan.
In consideration of the contribution of the
Interim Financing, various security interests and a guarantee by
the Company have been granted to secure its repayment, including a
fiducie-sûreté (equivalent of a trust under French law) over the
securities of Tech 7 (a French holding company controlled by Tech 6
and which holds directly or indirectly most of the non-US
Production Services subsidiaries1).
The balance of the New Money (approximately €180
million in principal, net of costs and commissions) would be
contributed by the end of August 2020, subject in particular to the
adoption by the Paris commercial court of the draft accelerated
financial safeguard plan approved by the concerned lenders on 5th
July 2020.
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About Technicolor
www.technicolor.com – Follow us: @Technicolor –
linkedin.com/company/technicolor
Technicolor shares are on the Euronext
Paris exchange (TCH) and traded in the USA on the OTCQX marketplace
(OTCQX: TCLRY).
Investor Relations
Christophe le Mignan: +33 1 88 24 32 83
Christophe.lemignan@technicolor.com
1 Namely: The Moving Picture Company Ltd, MPC
(Shanghai) Digital Technology Co. Ltd, The Mill Facility Ltd, The
Mill Berlin GmbH, The Mill (Facility) Aus Pty Ltd, Technicolor
Canada Inc, Vancouver Lab Inc, Canada Cinema Distribution, Inc,
Technicolor Animation Productions SAS, Mikros Images SAS, MPC
Creative SAS, Mikros Image Belgium and Mikros Brussels.
- 07-20-2020_First drawdown of the New Money facility and
Shareholder's meeting_VUS