SKW: insolvency plan can now be executed

By release procedure, the Appellate Court Munich (Landgericht München) rejects two complaints against the approval of the insolvency plan and thereby clears the way

Munich, November 29, 2018 - The way to achieve a financial restructuring of SKW Stahl-Metallurgie Holding AG is now cleared: By decision in date November 28, 2018 the Appellate Court Munich (Landgericht München) has rejected the last pending of two complaints filed against the confirmation of the insolvency plan by the competent insolvency court on August 14, 2018, by granting the motions of relief according to sec. 253 para. 4 Insolvency Code, as requested by the Company. Basically, this provision allows to reject a complaint in an expedited proceeding, if the disadvantages of further delaying the execution of the insolvency plan prevail.

Thereby the insolvency plan comes into force and can be executed. The plan determines all measures for the financial restructuring of the Company. Current shareholders exit the Company by transfer of their shares to the US investor Speyside Equity. Furthermore, after a capital decrease to zero, the insolvency plan provides for a swap of a major part of credit claims acquired by the Speyside Equity into equity of SKW Holding.

With the implementation of these capital-related measures, SKW's shares will become delisted (DE000SKWM021). For all non-subordinated insolvency creditors, the insolvency plan provides for full economic satisfaction of 100% of their respective claims.

Dr. Kay Michel, CEO of SKW: "I am very pleased that the court has accepted our motion of release and the irresponsible legal delaying tactics of a group of shareholders surrounding the chairman of the supervisory board Dr. Olaf Marx have thus been stopped. Now we will finally have again a positive equity and a gearing-rate in accordance with market standards. Because SKW Group is operating in a very challenging market environment, which requires our full attention we have to focus again on business challenges and intensify our look ahead."

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.