Safeguard Procedure Filed by Dane-Elec

Dane-Elec Memory, manufacturer and distributor of digital flash memory- based products, reports on the work carried out so far to determine which strategic options will best ensure its recovery.

Dane-Elec Memory’s provisional half-yearly results published on September 29 are clear confirmation of the group’s need to rapidly implement a strategic recovery plan, primarily for its activities in France.

The future plan has two aims which are to reboost sales whilst continuing to streamline costs, and will be implemented alongside the measures already undertaken by the group since the beginning of the year that have given its overseas subsidiaries room to gradually restore their bottom line (outsourcing of logistics activities, scheduled closure of its manufacturing plant in Ireland by the end of 2012).

In the interests of sound management, and to ensure the most appropriate legal framework for the definition and implementation of this plan, on October 17, 2012, Dane-Elec Memory filed and was granted a request with the Tribunal de commerce de Bobigny (93) to open a safeguard procedure (bankruptcy protection) for French entities, Dane-Elec Memory and Dane-Elec SA with an observation period of 6 months.

The safeguard procedure, which is reserved for companies that are not insolvent or in suspension of payments, enables business to restructure and pursue their economic activity, avoid job losses and pay off their debt.

For the duration of the observation period, Dane-Elec Memory will be able to operate under normal conditions, giving it the margin it needs to finalize and then implement its recovery plan. The company’s management has set itself a deadline of two months to finalize the plan with the collaboration of its employees and partners whose involvement and collaboration are crucial to its success.

Publication of the half-yearly financial report is deferred
Under the circumstances, Dane-Elec Memory is unable to approve its financial statements by the dates announced on September 29 or to publish its half-yearly financial report. The company undertakes to inform the market of any further developments as rapidly as possible.

Dane-Elec Memory operates in Europe, the United States, Asia, and the Middle East. It also has a hand-held product distribution subsidiary, Intervalle, in France. In 2011, Dane-Elec Memory generated revenues of €95 million.

Dane-Elec Memory is listed on the NYSE Euronext in Paris (ISIN: FR000036774, MNEMO: DAN) since 1997. Its shares are traded on the CAC Small index.