Latest information on preference shares
Why have redemptions been suspended? When will they continue?
The company has suspended redemptions of preference shares for the time being because of the increased uncertainty due to the Covid-19 pandemic. The duration of the uncertain remark is not yet known and the situation may take longer than expected.
In the current situation, the payment of redemptions would not be in the good interest of creditors and co-owners due to the cash flow. As a precaution, the company has decided to suspend redemptions for the time being since March 2020.
Why has the dividend been discontinued? When will the dividend share continue?
Dividends have been suspended as preliminary figures for 2020 have indicated that the company has no retained earnings to pay dividends.
According to the Articles of Association, a dividend can only be paid on retained earnings. As the company does not currently have retained earnings, the company is not able to pay dividends. As the company gains accumulated profits, dividend payment will be continued in accordance with the Articles of Association.
The payment of a dividend also requires that the company is solvent in accordance with the Board’s assessment and that the payment of dividends does not jeopardize the company’s solvency. We will continue to pay dividends as the company gains profits.
Why has the company discontinued dividend payments but continues to pay off debt in larger amounts than before?
Debt financing obligations must always be settled before dividends or redemptions of preference shares. Our efforts are aimed at improving our solvency and profitability and thus our ability to continue paying dividends in the future.