DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Holding takes important step on the way to its financial restructuring

/

Press Release

SKW Holding takes important step on the way to its financial restructuring

- creditors' committee approves insolvency plan with great majority

- before the insolvency plan can be executed, confirmation by the court necessary

- CEO Dr. Kay Michel: "this is an important day to lead SKW Group once more into calmer waters"

Munich, July 24, 2018 - SKW Group has taken an important step towards its financial restructuring. The creditors' meeting of the parent company, SKW Stahl-Metallurgie Holding AG yesterday approved the insolvency plan after intensive discussion with great majority. The approval was granted by all groups of creditors, except for the shareholders, who will exit the Company during the intended financial restructuring. Within the framework of the ongoing insolvency procedure under self-administration, the insolvency plan sets out all measures aimed at the financial restructuring of the Company. For this purpose, a significant share of the credit claims, which the US-American financial investor Speyside Equity holds against SKW Holding will be swapped into equity of the Company. It is planned that in the future, Speyside will hold 100% of the shares. The credit claims which remain with Speyside will be converted into a long-term shareholder loan and thus remain at the Company's perusal. Thereby, SKW Holding would be significantly, deleveraged and sufficiently capitalized once more.

As a next step, the insolvency court Munich now needs to confirm the insolvency plan. Provided that no remedies are lodged against this resolution and the insolvency plan can therefore become legally binding, its implementation can be initiated. For all non-subordinated insolvency creditors, the insolvency plan provides for full economic satisfaction of their claims in the amount of 100%. Insolvency proceedings under self-administration had been opened with regard of SKW Holding on December 1, 2017.

Dr. Kay Michel, CEO of SKW Stahl-Metallurgie Holding AG, comments: "I am very happy about yesterday's approval of the insolvency plan by the creditors. This is an important step on our way to conclude the insolvency proceeding and to lead SKW Group into calmer waters once more. The fact that even though, more than eight months have passed since the insolvency filing, our operative business continues without impediments, shows that our company operationally runs very stable and its restructuring is thus worthwhile."

Dr. Christian Gerloff (Law Firm Gerloff Liebler Rechtsanwälte, München), trustee of SKW Holding:
"From SKW's creditors point of view, the full economic satisfaction of insolvency claims, which the insolvency plan provides for, is an optimal result. The creditors' meeting could have approved the insolvency months ago, if it had not been for the actions of individual shareholders, who have tried to prolong the insolvency proceeding further and further. Thereby, the insolvency plan is the only alternative and also in the best interests of creditors, SKW-Group and its employees."

Contact

Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Telefon: +49 89 99 24 96 30
E-Mail: office@elsner-kommunikation.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.