Dorel to Appeal Decision Rendered by Luxembourg Administrative Tribunal
MONTRÉAL, Jan. 26, 2021 (GLOBE NEWSWIRE) — Dorel Industries Inc. (TSX: DII.B, DII.A) (“Dorel”) announces that it intends to appeal a decision of the Luxembourg Administrative Tribunal received on January 22, 2021 with respect to taxation on the transfer of certain assets in connection with an internal corporate reorganization that took place in 2015. The decision of the Luxembourg Administrative Tribunal concluded, in effect, that one of Dorel’s wholly-owned subsidiaries owes €46.8 million (euros) in tax (US $56.9 million) plus applicable interest.Forward-looking statements made in this press release, including statements relating to the appeal referred to above, are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from Dorel’s expectations expressed in or implied by the forward-looking statements include:general economic conditions;changes in product costs and supply channels, including disruption of Dorel’s supply chain resulting from the COVID-19 pandemic;foreign currency fluctuations, including high levels of volatility in foreign currencies with respect to the US dollar reflecting uncertainties related to the COVID-19 pandemic;customer and credit risk, including the concentration of revenues with a small number of customers;costs associated with product liability;changes in income tax legislation or the interpretation or application of those rules;the continued ability to develop products and support brand names;changes in the regulatory environment;outbreak of public health crises, such as the current COVID-19 pandemic, that could adversely affect global economies and financial markets, resulting in an economic downturn which could be for a prolonged period of time and have a material adverse effect on the demand for Dorel’s products and on its business, financial condition and results of operations;continued access to capital resources, including compliance by Dorel with financial covenants under its senior unsecured notes, revolving bank loans and term loan agreements, and the related costs of borrowing, all of which may be adversely impacted by the COVID-19 pandemic;failures related to information technology systems;changes in assumptions in the valuation of goodwill and other intangible assets and future decline in market capitalization;there being no certainty that Dorel will declare any dividend in the future;the results of the appeal to the Luxembourg Administrative Court referred to above; andthe failure to complete Dorel’s previously-announced going-private transaction.
These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors set out in the previously-mentioned documents are expressly incorporated by reference herein in their entirety.Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on Dorel’s business, financial condition or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.CONTACTS:
