MediClin AG: Provision for a debtor warrant in the amount of EUR 19.5 mill. due to a received rent deductions in 2005 to 2007 burden FY 2017 results
Ad hoc Release according §15 WpHG
Provision for a debtor warrant in the amount of EUR 19.5 mill. due to a received rent deductions in 2005 to 2007 burden FY 2017 results
Offenburg, November 21, 2017 - In 2005 to 2007, MediClin AKTIENGESELLSCHAFT (MediClin) received a rent deductions totalling EUR 21.0 mill. from the real estate fund for ten of the 21 leased post-acute clinics. In conjunction with this rent reduction, a performance-related repayment (debtor warrant) until the end of the term (31.12.2027) was agreed, which is dependent upon the achievement of economic performance criteria by the clinics included in the fund. Based on the present planning, the probability of occurrence that the performance criteria will be achieved is estimated to be likely, so that the formation of a provision for future financial liability in the amount of EUR 19.5 mill. is necessary due to the rules of accounting.
If the assessment of probability of occurrence for the aforementioned performance criteria changes in the future, the provision will be accordingly adjusted.
The amount of the provision leads to downward adjustment of the guidance for the Group. Currently the Board of Management is assuming that the Group-EBIT for FY 2017 will be between EUR 5.5 mill. and EUR 7.5 mill.
The appropriateness of the rental payments, to which the deduction by a debtor warrant was granted, is subject of civil proceedings which MediClin has filed at the Landgericht Offenburg in May 2016. A judicial appointment or the first hearing has not yet taken place.
About MediClin AG (Ticker: MED; WKN: 659 510)
MediClin AG is a nation-wide clinic operator and large provider of services in the area of Psycho- and Neurosciences as well as Orthopaedic. With 34 clinics, 7 nursing care facilities and 8 medical care centres in 11 federal states MediClin has a total capacity of close to 8,300 beds. MediClins' facilities include acute care clinics, general hospitals, special treatment facilities, specialised hospitals and clinics for post-acute treatment as well as medical rehabilitation. MediClin has close to 9,600 employees.
MediClin - A company of the Asklepios Group
21-Nov-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: MediClin AG Okenstraße 27 77652 Offenburg
Germany Phone: +49 (0)781 488-326 Fax: +49 (0)781 488-184 E-mail: email@example.com Internet: www.mediclin.de ISIN: DE0006595101 WKN: 659510 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service
631491 21-Nov-2017 CET/CEST