DGAP-News: SKW Stahl-Metallurgie Holding AG

Press Release

SKW: Sale of credit claims to Speyside Equity completed

- Financial investor closes the purchase of bank claims amounting to approx. EUR 75 million (nominal value) and takes one seat in the preliminary committee of creditors

- Preparations of the insolvency plan for the financial restructuring of the SKW Group are well underway

Munich, October 27, 2017 - The US financial investor Speyside Equity has legally closed the announced purchase of all credit claims against SKW Stahl-Metallurgie Holding AG in the amount of approx. EUR 75 million (nominal value) from the SKW syndicated loan agreement. Speyside Equity is thus by far the largest creditor of the company and has already taken one seat in the preliminary committee of creditors of the company in place of the syndicated banks.

The local court in Munich (insolvency court) had approved the application made by the management board on September 28, 2017, and had ordered preliminary self-administration plus protective shield for SKW Stahl-Metallurgie Holding AG. The necessary financial restructuring and recapitalization of the company, partly by means of converting credit claims into equity (debt-to-equity swap), shall now be achieved through an insolvency plan. Prior to this, the originally planned restructuring concept that included the participation of the existing shareholders failed due to the opposition of one shareholder who simultaneously holds a position on the supervisory board. The operating businesses of the operational SKW companies are not affected by the insolvency of the holding company and continue without any restrictions. The court appointed the financial restructuring expert Dr. Christian Gerloff, partner of the Gerloff Liebler Rechtsanwälte law firm in Munich, as the preliminary custodian ("vorläufiger Sachwalter").

Dr. Kay Michel, CEO of SKW Stahl-Metallurgie Holding AG: "The completion of the sale of claims to Speyside Equity is an important step for implementing the planned restructuring concept. We continue to work intensively on preparing the insolvency plan, on the basis of which we intend to deleverage and sufficiently capitalize the SKW Group. It is extremely pleasing to see that customers, suppliers and employees have remained so loyal to our company in recent weeks."

Contact partner
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH

Telephone: +49 89 99 24 96 30
Email: 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.