Danish pensions administrator PKA has said financial problems at private equity holding Genan are being “taken seriously” but will not have an impact on promised pension payments.
PKA, which manages around DKK200bn (€26.8bn) on behalf of five labour-market pension funds, described the situation at tyre recycling firm Genan as “problematic”.
PKA holds around 45% of Genan, having invested around DKK1bn in it.
The financial problems at the company resulted in the delay in publishing its 2013 accounts.
Peter Damgaard Jensen, chief executive of PKA, said: “We take this situation very seriously.”
However, he said PKA was very well consolidated, that the problems at Genan would have no impact on the pension payments it promised its members.
He said the company had just navigated years of a tough financial crisis, which had been much more serious for its solvency.
“In that situation, we did not change anything in our pensions – neither will it happen this time,” said Damgaard Jensen.
PKA pushed through a number of changes at Genan, it said, including the appointment of a new chairman of Genan Group and Genan Business & Development.
A new chief executive and CFO had been appointed, as well as new auditors, it said.
Founder and chairman Bent Nielsen stepped down as chairman and retired from management.
Over the summer, Genan’s lenders were working to find a solution to the company’s problems, Damgaard Jensen said.
“We agree with the banks on the framework for a solution,” he said, adding that there were still some things that needed to fall into place before the parties could reach a final agreement.
“We will, of course, do everything possible to protect our investment, but we at PKA also believe in Genan’s business idea, so we are fighting for its survival,” he said.
Genan has said it will publish 2013 financial statements later this week.
Damgaard Jensen said this “had to happen”, adding that PKA’s patience had run out.
“We now want to have clarification so we can move forward,” he said.