Talvivaara reorganization proceedings complete; violation orders made

By Caroline Salls

Pittsburgh, June 2 – Talvivaara Mining Co. plc said the District Court of Espoo confirmed its corporate restructuring program on Friday.

According to a news release, the court also accepted the program into force, despite the possible appeal process.

As a result of the ruling, Talvivaara’s corporate reorganization proceedings have been completed.

The company said it will now focus on developing, commercializing and financing its new business opportunities and managing the €9.6 million of liabilities set in the confirmed restructuring program.

The confirmed restructuring program gives Talvivaara two years to pay the secured and unsecured restructuring debts to its creditors.

Talvivaara said in a separate news release that the Helsinki District Court has given a suspended sentence to chief executive officer Pekka Pera for disclosure violations made in 2012 and 2013.

Of the 10 charges concerning Pera, seven were dismissed in their entirety and one partially.

The company said the other defendants in the disclosure litigation, former CEO Harri Natunen and former chief financial officer/deputy CEO Saila Miettinen-Lahde, were given fines.

In addition, the court ordered Talvivaara to pay €50,000 of corporate fines, which the company said is considered restructuring debt.

The company and the defendants are assessing the ruling, and Talvivaara said it is likely that the case will continue at the Helsinki Court of Appeals.

The Helsinki District Court also gave a decision on the charges against a member of the company’s executive committee regarding the misuse of inside information. An executive committee member was given a suspended sentence for misuse of inside information.

Talvivaara said it was not involved in the misuse of information matter.

In its view, the company said the decisions by the district court have no effect on Talvivaara or its financial position, nor do they give any reason to reassess the position of the CEO.

Helsinki-based Talvivaara Mining is a base metals producer with its primary focus on nickel and zinc.

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