Dannemora Magnetit AB, the subsidiary of Dannemora Mineral AB where the majority of the operations is conducted, today presented a composition proposal for their unsecured creditors, in which the creditors would receive 25 per cent in payment for their debts. This would be paid within 12 months of the completion of the reconstruction. The remainder of the debt would be written off through the proposed composition.

The composition proposal is only part of the solution if the Dannemora Group is to be reconstructed and avoid bankruptcy. The Dannemora Group will only be able to be reconstructed if the financial negotiations that are currently underway can be completed according to plan and if a private agreement can be reached with the creditors in the parent company, Dannemora Mineral AB. As a public composition is needed for Dannemora Magnetit AB, legal proceedings are required, which take time. This means that these proceedings have to be initiated before knowing whether the financial negotiations can be completed according to plan and whether a private agreement can be reached in the parent company.

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