Tiscali 2013 Annual Report Download - page 131

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
131
 has reduced its exposure to the suppliers;
 during 2013, achieved a growing trend in the telecommunications services customer base;
 updated the 2014-2018 financial and business plan having taken into account the results for
2013 and the first few months of 2014, on a consistent basis with the envisaged debt
restructuring transaction deriving from the GFA;
 continued to focus on certain sectors with high growth potential, such as the media sector and
on Over-The-Top products with high growth potential.
Furthermore, the Directors - despite disclosing how the finalisation of the debt restructuring transaction
deriving from the GFA envisaged in the afore-mentioned Term Sheet is subordinate to the occurrence
of specific conditions, including:
 the waiver by the financing institutions of the adoption of the contractual remedies envisaged by
the GFA in the event of so-called Events of Default, until all the necessary contractual
documentation has been signed;
 the completion of the authorisation process for the competent decision-making bodies of the
compliant financing institutions; and
 the definition of the contractual documentation necessary for the implementation of said
transaction under satisfactory terms for all the financing institutions,
on the basis of the matters indicated above, reasonably believe that the afore-mentioned Group debt
restructuring transactions can be finalised, so as to be able to proceed with the implementation of the
Group financial and business plan, thereby permitting over the long-term the achievement of a
balanced equity, financial and economic situation.
In conclusion, when analysing what has already been achieved within the sphere of the process aimed
at enabling the Group to obtain long-term equity, financial and economic equilibrium, the Directors
acknowledge that, as already indicated in the financial statements relating to 2012, at present
uncertainties still remain, with regards to events and circumstances that may raise considerable doubt
on the ability of the Group to continue to operate under the going-concern assumption, however, after
making the necessary checks and after assessing the uncertainties found in the light of the factors
described, and having taken into account the afore-mentioned outline consent expressed by all the
financing institutions with regard to the proposed restructuring of the debt as per the GFA, they have
the reasonable expectation that the definition of the transaction can be reached for the rebalancing of
the Group’s financial structures on a consistent basis with the expected cash flows and suitable for
supporting the operating activities laid out in the afore-mentioned financial and business plans and
that the Group has adequate resources to continue operations in the near future and therefore have
adopted the going-concern assumption when preparing the financial statements.
This assessment is naturally the result of a subjective opinion, which has compared - with respect to
the events indicated above - the degree of probability of their occurrence with the opposite situation.
Therefore, obviously it must be emphasised, in as far as it is obvious, that the prognostic opinion
underlying the decision of the board, is liable to be contradicted by the evolution of events. Precisely
because it is aware of the intrinsic limits of its decision, the Board of Directors will constantly monitor
the evolution of the factors taken into consideration (as well as any other additional circumstance
which takes on significance), so as to be able to promptly adopt the necessary measures, also in
terms of recourse to the procedures envisaged by the law for business crisis situations.
Form and content of the accounting statements
Basis of preparation