DGAP-Ad hoc: SKW Stahl-Metallurgie Holding AG

SKW Stahl-Metallurgie Holding AG files for insolvency under self-administration - business operations continue without constraints

Today, the management board of SKW Stahl-Metallurgie Holding AG (ISIN DE000SKWM021) has decided to file for insolvency with the competent insolvency court because of overindebtedness and to apply for the initiation of a "protective shield" proceeding ("Schutzschirmverfahren").

After comprehensive review, the management board has become convinced that there is no chance to sustainably restore the positive continuance prognosis of SKW Stahl-Metallurgie Holding AG. All efforts to achieve a financial restructuring will therefore be continued during an in-court insolvency proceeding under self-administration under the leadership of the current management board. There is currently no reason to initiate insolvency proceedings for any of SKW Stahl-Metallurgie Holding AG's subsidiaries. Business operations of all subsidiaries are continued without constraints.

The intended financial restructuring of the company by a capital increase against contribution in kind (debt-to-equity-swap) with participation of the investor Speyside Equity Industrial Europe Luxembourg S.à r.l., Luxemburg, now ought to be achieved during the insolvency plan proceeding. In the meantime, the creditors of the syndicated loan agreement of SKW Stahl-Metallurgie Holding AG have sold their credit claims to Speyside Equity Industrial Europe Luxembourg S.à r.l., Luxemburg. Irrespective of this filing for insolvency, closing of the claim purchase agreement is expected in mid-October and is not conditional on the consent of the shareholders' meeting of SKW Stahl-Metallurgie Holding AG to the debt-to-equity-swap.

In light of this situation, the management board will cancel the shareholders' meeting convened for October 10, 2017. The shareholder MCGM GmbH has asked the company to convene a further shareholders' meeting with a slightly modified agenda. The management will comply with this request and will announce the invitation to a further shareholders' meeting promptly.