Zortrax's largest contractors, whose claims are subject to restructuring proceedings, have opted for the adoption of restructuring proposals.
The restructuring plan assumes the conversion of liabilities to the largest partners into the company's shares, full repayment of the principal amount of liabilities worth less than PLN 130,000 and public law liabilities. Zortrax announced it was looking to restructure the business earlier this year to address financial concerns.
On 8 August 2024, an application for approval of the restructuring arrangement (partial arrangement) registered with the District Court in Olsztyn was filed. This, according to a company press release, is a consequence of the voting on the arrangement proposals presented by the arrangement supervisor, Mr. Paweł Głodek, developed in cooperation with the management board of Zortrax S.A.
"The arrangement proposals have been developed on the basis of an analysis of Zortrax's capabilities in the implementation of the restructuring plan and taking into account the interest of the Company's contractors. The fact that the creditors representing the vast majority of liabilities covered by the arrangement voted for the adoption of the plan confirms that we have worked out a real compromise," said Paweł Głodek, arrangement supervisor and licensed restructuring advisor at Resist Law Firm.
The Company's public-law creditor (ZUS) was classified as group 1. The proposal for this group assumes full repayment of liabilities spread over 24 instalments. ZUS has voted in favour of the restructuring agreement.
The second group includes Zortrax contractors whose claims do not exceed PLN 130,000. The arrangement proposals assume the full repayment of the principal amount of Zortrax's liabilities to these contractors in 36 instalments.
Zortrax's contractors with claims to the company worth more than PLN 130,000 have been classified as group three. The total value of liabilities in this group amounted to approximately PLN 6.6 million. According to the prepared restructuring plan, these liabilities will be converted into shares of Zortrax S.A. The issue price of the new shares will be PLN 0.10 (10 groszy per share).
"A difficult period is behind us, which led us to the moment when it was necessary to take painful, but necessary actions. The restructuring plan prepared with support of the Resist Law Firm allows Zortrax to get out of a difficult situation. I am pleased with the positive reception of the proposal by our contractors. In my opinion, this is an expression of faith in the future of the company and confidence in our ability to go through with implementing the plan. Thank you for your trust and support," said Mariusz Babula, CEO of Zortrax S.A.
The company – together with the restructuring advisor – intends to continue the process of comprehensive restructuring of its enterprise, which includes both the revenue and cost side. Only such an approach will allow for an increase in turnover and maximisation of profits at a level that will enable the settlement of the Company's debt on the terms provided for in the arrangement. The prepared restructuring plan assumes the application of such restructuring measures as: outsourcing of processes, reduction of real estate rental costs, restructuring of the financing structure and reduction of debt, or increasing the share of direct sales in the revenue structure. Some of the planned activities have already been implemented, and their full effects will be visible in the second half of the year.
"The profound changes that the company has undergone will result in a reduction in real estate rental costs by nearly 80% compared to the level at the beginning of 2023, wage and social security costs by approx. 70% and external services costs by nearly 50%. At the same time, Zortrax maintains the ability to develop software, develop new hardware, provide machines, parts, and materials for 3D printing, and provide technical support to existing and new customers," added Mariusz Babula, CEO of Zortrax S.A.
