Tuesday, 31st December 2013, Velenje, Slovenia

Public announcement of the company Gorenje, d.d.

Pursuant to the provisions of the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (ZFPPIPP) which came into effect on December 7, 2013, the company Merkur, d.d., has announced its long-term insolvency resulting from excessive debt and capital inadequacy. At the same time, it filed on December 27, 2013 with the relevant court a proposal for instituting the proceedings of a second compulsory settlement pursuant to Article 221 of the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (ZFPPIPP), and provided an explanation that pursuant to Article 221 of the said Act, a second compulsory settlement shall only pertain to the receivables to which the previous confirmed and final compulsory settlement from 2011 also pertained.

Gorenje Group companies are exposed to Merkur, d.d., with regard to the previous finally confirmed compulsory settlement due to the equity stake in the company Merkur, d.d., and the recognized outstanding receivables which have not yet reached maturity. Due to the announced start of the procedure pursuant to the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (ZFPPIPP), Gorenje Group will recognize in 2013 impairments of a total of EUR 8.83 million. Of this amount, impairments of EUR 0.45 million have already been recognized in the financial statements for the period January–September 2013, as impairments to the equity stake in the company Merkur, d.d. In the last quarter, we shall recognize additional impairments to the equity stake and the receivables which were recognized in the first compulsory settlement but have not yet reached maturity, with a total value of EUR 8.38 million. Considering the planned impairment of the said equity stake in the last quarter, Gorenje Group result for the year will be worse by EUR 5.23 million for this reason, relative to the announced 2013 end-of-year performance estimate.
 
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