Finnish Metal Component Maker Componenta Files For Debt Restructuring

Finnish metal component maker Componenta is seeking debt restructuring after failing to get funding to cover mounting losses in its Netherlands subsidiary, it said on Thursday. Componenta, which makes cast components for vehicle and machine manufacturers, said it was filing for restructuring for the Finnish parent company and Swedish subsidiaries and the Dutch subsidiary was filing for bankruptcy. Its subsidiary in Turkey, Componenta Dokumculuk Ticaret , will continue operations after securing local financing. Chief Executive Harri Suutari partly blamed weak demand from the mining sector for the problems. "We've been hurt by weak market demand this year, but the main reason for (restructuring) is negative cash flow and continuing losses in the Dutch business," he told Reuters. Componenta tried to boost profitability in the Dutch company by restructuring its production, but had failed to raise the necessary funding, Suutari added. The Dutch business has accumulated losses of around 100 million euros ($111.3 million) since Componenta acquired it in 2004. Read more.