Date: 2015-11-17
Type of information: Restructuring
Compound:
Company: Therametrics (Switzerland)
Therapeutic area:
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On November 17, 2015, Therametrics announced that it has concluded, over one month ahead of schedule, the restructuring of its German subsidiary as set forth in the company’s global restructuring plan announced last month. * On October 8, 2015, Therametrics announced a new and radical restructuring plan. Despite the austerity measures taken over the past two years, the company continues to generate significant cash losses. In view of the continued deterioration of liquidity, together with doubts about the ability to achieve the additional measures outlined in the going concern footnote of the Company's half-year financial statements (published on August 28) it is doubtful that the company will be able to support the liquidity needs of its group companies over a sustained period of time. The Board of Directors approved a comprehensive restructuring plan designed to rapidly and substantially reducing the cash needs of the group. The plan includes drastic and immediate headcount reductions, consolidation of historically decentralized functions, and the sale of real estate. Since these measures alone will not be sufficient to secure the company's going concern, the Board of Directors has asked management to approach certain potential investors, including the company's major shareholders, to negotiate the terms of a possible cash contribution, which would fund the aforementioned plan. The Board has set a final deadline for Friday, October 16 for securing the necessary financial commitments. In the event the Company fails to secure the financial resources necessary to carry out this plan within the above mentioned deadline, the board of directors will consider its remaining options, which include the winding down of operations and, as a last resort, bankruptcy. Management is currently drawing up stand-alone interim balance sheets, both on a going concern and on a liquidation basis, and at the same time exploring the possibility of selling certain lines of business and subsidiaries.
Achievement of this milestone is also the conditional requirement for triggering the second tranche of the convertible loan agreement signed and announced on October 29, 2015. The company has notified the loan holders, Fin Posillipo and Bootes of this milestone achievement and has received confirmation from them that the second loan tranche of CHF 1,100,000 will be paid within the next seven days.
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