Scrap tire recycling company Genan has consolidated its operating companies in a new holding company to create a clear corporate structure and a cost-effective business. It has also reported former majority shareholder and founder Bent A Nielsen to the police.
Genan, its bank connections – Danske Bank, FIH, Handelsbanken and SEB – and shareholder company PKA have adjusted and restructured Genan’s debt, and PKA has invested new equity in the newly established Genan group.
In order to clarify whether any unlawful activities had taken place within the company, the Genan board of directors has looked into the circumstances leading up to the company’s difficulties in early summer 2014. On these grounds, Genan has reported Nielsen to the police, contending embezzlement and breach of fiduciary duty.
The operating companies of Genan have now been consolidated in a new, Danish holding company, Genan Holding, which is 100% owned by Genan Invest. Upon establishment, the company’s balance sheet is just under Dkr 1.4bn with an equity capital of Dkr 225m. Genan employs 230 staff members worldwide and expects approximately Dkr 300m turnover for 2015.
Chairman of the board for Genan, Peter Thorsen, said, “It is hard work to complete a turn-around, especially in a company that has been subject to such intense publicity. But Genan has made a fine start in 2015, and both I and the competent and loyal employees of Genan will push forward to implement the new strategic plan for 2015-2017.”
May 20, 2015