The shareholders of RPC Voyages SAS, which operates the French online travel agency Ecotour.com and is 55 percent owned by TOMORROW FOCUS AG through the latter's subsidiary TF Digital GmbH, have stopped financing the subsidiary.

After the failure of sale negotiations with potential investors and the refusal of RPC Voyages SAS's minority shareholders to provide further liquidity in order to maintain the company's business operations, TOMORROW FOCUS AG has also decided not to make any more funds available. This decision was reinforced by the view of the Management Board at TOMORROW FOCUS AG that RPC Voyages SAS was unlikely to see any improvement in its business performance and earnings in the short or medium term.

Consequently, a French Court has today initiated creditor protection proceedings (Redressement judiciaire) and appointed an administrator.

In response to the court proceedings initiated today, the Management Board has decided to completely write off those assets of its French subsidiary that were included in the consolidated balance sheet during purchase price allocation as well as the corresponding goodwill. The total write-off as at 30 September 2014 thus comes to EUR 13.2 million. Based on current estimates, TOMORROW FOCUS AG will also incur further liabilities of up to approximately EUR 3.0 million. At the same time, the EUR 5.2 million call option held by the minority shareholders of RPC Voyages SAS will be cancelled as a result of the insolvency proceedings and recognised as consolidated income. The Management Board of TOMORROW FOCUS AG expects the overall negative impact on earnings in the financial year 2014 to be up to approximately EUR 10.0 million.

The court proceedings solely affect TF Digital GmbH, in its capacity as a shareholder, and its parent company TOMORROW FOCUS AG. They do not affect any other companies within the TOMORROW FOCUS Group.

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