In August 2014, Danish pension fund PKA acquired 97% shares in tire recycling company Genan. It has now signed an agreement with a group of four bank lenders and accountancy firm Deloitte, to secure Genan’s future, safeguarding jobs and preserving the company. Meanwhile, a new chairman of the Genan board of directors has been instated. The board is also looking to appoint a new CEO.
PKA has had a dialogue with Bagmandspolitiet (the Danish Fraud Intelligence Bureau) concerning the role of Bent A. Nielsen, the former chairman and CEO of Genan. The course of events preceding the collapse of Genan will be closely examined in order to establish whether any illegal activity has taken place. Alongside the negotiations concerning Genan’s future, PKA has focused efforts on finding a new board for the company.
Peter Damgaard Jensen, MD of PKA, said, “Ever since last summer, PKA has worked hard to preserve our investment in Genan and all along, we have been confident that Genan’s business model is highly viable. Therefore, it is extremely satisfactory that an agreement with the banks and Deloitte has now been signed, allowing us to look ahead and allowing Genan to concentrate on doing what the company does so well.”