Annual Report 2007 - Muehlhan AG

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the development of the Group’s pension accruals is analyzed as follows:
in kEur 2007 2006
at 1 January 519 520
interest with respect to earned pension entitlements 17 18
benefits paid -36 -33
addition of defined-contribution plans through initial consolidation 93 0
increase in accruals – contributory pension plans 52 14
At 31 December 645 519
it is assumed that pension payments in 2008 will correspond to the level of the previous year. actuarial gains or losses
were not set off since they did not exceed the 10% corridor.
11. FINANCIAL LIABILITIES
financial liabilities are analyzed by maturities as follows:
in kEur 2007 Time to maturity 2006 Time to maturity
Total 0-1 year
1-5
years
> 5
years Total 0-1 year
loans 34,527 0 7,000 27,527 34,401 0 0 34,401
liabilities to banks 1,984 1,984 0 0 233 233 0 0
Total 36,511 1,984 7,000 27,527 34,634 233 0 34,401
on 28 March 2006, the parent company issued a Eur 35 million loan. the loan is not collaterized and runs until 2016.
repayment will be in five equal annual installments as from 2012. the loan carries interest at 5.77% payable every six
months in arrears. the prudential insurance Company of america subscribed the loan. the transaction expenses of the
loan amounted to nearly Eur 1.2 million. the loan is stated at amortized costs after taking into account the transaction
expenses. all bank liabilities existing at the time of the issuance of the loan were repaid as a consequence of the inflow of
funds. in the next four years, the loan will lead to annual outflows of funds of Eur 2,020 thousand, in 2012 to an outflow
of Eur 8,818 thousand, and thereafter Eur 31,231 thousand. two performance-linked requirements of the loan could
not be met due to weak profitability. an “amendment” was agreed with the lender in Mid-March 2008, according to
which he waives the termination right to which he is entitled as a result of the violation of the bond terms. in return, in
december 2007 we pledged half of the Eur 10.0 million amount for the expected term of 14 or 26 months. an interest
adjustment could be avoided through the agreement of a one-time payment of Eur 120 thousand. to our knowledge,
no active market exists for this loan, so that the fair value approximates the book value as far as we know. the liquidity
situation of the Group is hereby not endangered (see also note no. 3).
1-5
years
> 5
years