Tiscali 2013 Annual Report Download - page 29

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
29
and, hypothesises, amongst other aspects, in relation to the projections of the 2014-2018 cash
flows, the rescheduling of the part of the debt deriving from the GFA falling due in 2017 in
excess with respect to the net cash flows generated over the plan’s duration;
Therefore, the following depend on the possibility of managing to finalise the restructuring transaction
for the financial debt of the Tiscali Group described in summary form previously and the possibility of
achieving the forecasts contained in the business plan: a) the ability to rebuild an adequate supply of
equity, b) the recoverability of asset items, c) the capacity to comply with the financial covenants as
per the GFA and other contractual obligations relating to the Group’s financial debt and therefore to
maintain the availability of financing granted thus being able to meet other Group obligations, d)
achievement of a balanced long-term equity, economic and financial situation for the Group.
Final assessment of the Board of Directors
The Board of Directors, after lengthy discussion, has highlighted how the Group:
 has observed all the payment obligations envisaged by the financial plan and by the GFA,
having paid the related financial institutions, during 2013, a total amount of EUR 9 million (of
which EUR 7.5 million for repayment of the principal and EUR 1.5 million for interest); In January
2014, in accordance with the GFA, interest was also repaid for EUR 0.5 million;
 has generated cash and cash equivalents of around EUR 32 million;
 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