DGAP-Ad hoc: SKW Stahl-Metallurgie Holding AG

SKW submits, in alignment with preliminary custodian and preliminary creditors committee, insolvency plan - Annual General Meeting on December 6th, 2017 is cancelled

Munich, November 28th, 2017

The management of of SKW Stahl-Metallurgie Holding AG (ISIN DE000SKWM021) has submitted, in aligment with the preliminary custodian and the preliminary creditors committee, an insolvency plan to the competent court of Munich. This plan presents a concept for the financial restructuring of the Company.

In order to achieve a debt-relief, necessary for the restructuring of the Company, a capital increase against contribution in kind (debt-equity swap) shall be executed in the course of the insolvency plan procedure under participation of Speyside Equity Industrial Europe Luxembourg S.à r.l., Luxemburg, by far largest creditor of the Company. Thereby, credit claims in the amount of nominally EUR 35 Mio. shall be swapped into 950,000 shares of the Company. Prior to this, a capital decrease to zero shall be executed, which will entail a withdrawl of the current shareholders and the delisting of the Company. All other, not subordinated creditors of the Company will in principle become fully satisfied during the insolvency plan proceeding. The remaining credit claims of Speyside of approx. EUR 40 Mio. shall remain at the disposal of SKW group as a long term shareholder loan. The repayment will be aligned with the liquidity needs of the Company.

The company expects the prompt opening of the insolvency procedure.

In light of this situation, the management, in alignment with the preliminary custodian, has cancelled the Annual General Meeting on December 6th, 2017, which had been scheduled due to the request of MCGM GmbH and other shareholders. The items of the agenda are unsuitable to restructure the Company and to eliminate insolvency.