DGAP-News: SKW Stahl-Metallurgie Holding AG

SKW Metallurgie: Breakthrough in efforts for financial restructuring

- Consortium banks reach an agreement with financial investor Speyside on acquisition of loan claims

- Investor with industry experience will negotiate with SKW further terms of financial restructuring with SKW

- Investor provides strategic perspectives on the world market

Munich (Germany), July 20, 2017.

The lenders of SKW Stahl-Metallurgie Holding AG have in principle agreed with the industry-experienced financial investor Speyside Private Fund Advisers LLC, New York, USA on the terms of acquiring the complete consortial loan in the amount of 74 million euros from the lenders.

"The term sheet is a breakthrough in our joint efforts to sustainably reposition SKW on the world market with a healthy balance sheet and significantly strengthened equity," states Dr. Kay Michel, CEO of SKW Stahl-Metallurgie Holding AG.

SKW's management board is now striving to reach an agreement with Speyside Capital on the terms and conditions of further financial restructuring and the strategic development of the SKW Group. In order to achieve the necessary debt reduction of SKW Stahl-Metallurgie Holding AG, both parties involved will also negotiate a conversion of credit claims into equity by means of a debt-to-equity swap.

"This solution means, that we timely meet the conditions which were agreed with our lenders last December," Michel explains. "In addition, Speyside provides new opportunities and perspectives on the world market ". Michel is confident to conclude the necessary further negotiations promptly.

Executive Board as well as Supervisory Board of SKW fully support the lender's decision, "because they obviously opted for the most attractive offer to restructure our balance sheet". The prospected solution would enable SKW to "stabilize and expand operational strength in the core markets and improve our competitive position sustainably."

Due to the outstanding necessary extensive preparations following a final agreement with Speyside Capital, SKW Stahl-Metallurgie Holding AG will now invite for an ordinary stockholder meeting on August 31st, 2017. Final terms and conditions for an enduring financial restructuring shall be submitted to a subsequent stockholders meeting.

"This concept provides a lasting perspective for SKW. We are confident, to convince our shareholders to join us on this way forward, "concludes the Chairman of the Supervisory Board, Volker Stegmann.

The financial figures of half-year 2017 are to be published shortly before the ordinary meeting of the stockholders on 31st August 2017.

Contact

Thomas Schulz
Telefon: +49 171 86 86 482
E-Mail: tsc@tsc-komm.de
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG and the SKW Metallurgie Group
The SKW Metallurgie Group is a global market leader for chemical additives for hot metal desulphurization and for cored wire and other products for secondary metallurgy. The Group's products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world's leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US, Canada, Mexico, Brazil, South Korea, Russia, the Peoples' Republic of China and India (joint venture). Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange's Prime Standard since December 1, 2006; since 2011 (conversion to name shares) with ISIN DE000SKWM021.

Disclaimer

This press release may include certain forward-looking statements which are based on currently available assumptions and predictions of the SKW Metallurgie Group's management as well as on other currently available information. Various identified as well as unidentified risks and uncertainties as well as other factors may result in a deviation of actual results, financial situation, development or achievement of the company compared to the assessments made herein. SKW Stahl-Metallurgie Holding AG does not intend and assumes no liability to update such forward-looking statements and to adjust them to future events and developments.