Konsolidator’s Offer for Dalekovod is No Longer Binding

The company Konsolidator reported today to Dalekovod that their offer for recapitalization can no longer be considered binding, but only an expression of interest on a non-binding basis, and emphasizes that they remain determined “in their intention to find a positive solution for Dalekovod” through recapitalization, although they believe that the significant uncertainty regarding the outcome of the court proceedings for the pre-bankruptcy settlement deepens the difficulties in Dalekovod’s operations.

Konsolidator, a company owned by the fund management company Nexus Private Equity Partner, submitted a binding offer for the recapitalization of Dalekovod in mid-May of this year amounting to 150 million kuna. The offer was initially valid until July 15, and after three extensions, its validity period was moved to today, September 30.

The offer was extended due to the time lag in the court proceedings for the pre-bankruptcy settlement over Dalekovod, but as of today, the remaining key condition set in that offer has not been fulfilled, which is the finality of the Commercial Court’s decision approving the concluded pre-bankruptcy settlement, as noted in Konsolidator’s announcement.

“Therefore, taking into account the significant time lag from the moment of the initial submission of the binding offer and, additionally, that at this moment it is not possible to realistically assess the outcome, nor the time required to complete the proceedings for the implementation of the pre-bankruptcy settlement, considering that it has been rejected at the first-instance level, our offer can no longer be considered binding, but only an expression of interest for the recapitalization of Dalekovod on a non-binding basis,” Konsolidator emphasizes.

However, they undoubtedly express the intention of actively and continuously monitoring the proceedings for the pre-bankruptcy settlement over Dalekovod, as well as the realization of the financial plan presented with the settlement proposal, as their offer is based on that financial plan.

Depending on the realization of that plan, they announce the resubmission of a new binding offer or, in the case of a significant negative deviation from the plan, withdrawal from the investment in Dalekovod.

Namely, as they state, their intention is at the moment of fulfilling the remaining condition for recapitalization, i.e., the finality of the Commercial Court’s decision approving the concluded pre-bankruptcy settlement, to analyze the then-current realization of the financial plan, as well as the status and perspective of Dalekovod at that moment and accordingly, “in the case of a positive outcome, make a decision on recapitalization and resubmit a new binding offer, or in the case of materially significant negative deviation of the company’s performance compared to the financial plan and/or significantly impaired prospects of the company, withdraw from the investment in Dalekovod.”

Konsolidator claims that they remain determined in their intention to find a positive solution for Dalekovod through its recapitalization, but they also believe that due to the significant time lag and great uncertainty regarding the outcome of the pre-bankruptcy settlement, “the difficulties in Dalekovod’s operations deepen every day, thereby questioning the realization of the financial plan.”