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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 Private Fund Advisers LLC 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 Private Fund Advisers LLC, 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 August 31st, 2017.

Contact
Thomas Schulz
Telephone: +49 171 86 86 482
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG and the SKW Metallurgie Group
The SKW Metallurgie Group is the world leader in the market for chemical additives used for pig iron desulphurization and in the market for cored wires and other secondary metallurgy products. The Group’s products enable steel makers to produce high-grade steel products efficiently. The Group’s customers include the world’s leading steel companies. The SKW Metallurgie Group’s metallurgical expertise is the result of more than 50 years’ experience in this field. The Group is active in more than 40 countries today. The headquarters of SKW Metallurgie Group is located in Germany; its production facilities are located in France, the United States, Canada, Mexico, Brazil, South Korea, Russia, the People’s Republic of China and India (joint venture). The Group generated revenues of roughly EUR 230 million in 2016. It had approximately 560 employees at December 31, 2016.
The shares of SKW Stahl-Metallurgie Holding AG have been listed on the Prime Standard segment of the Frankfurt Stock Exchange (Germany) since December 1, 2006; they have been listed under WKN SKWM02 and ISIN DE000SKWM021 since 2011, when the shares were converted to registered shares.

Disclaimer
This press release may contain forward-looking statements that are based on the current assumptions and forecasts of the Management of the SKW Metallurgie Group and other currently available information. Due to various known and unknown risks and uncertainties, the company’s actual results, financial position, development or performance could differ significantly from the estimates expressed herein. SKW Stahl-Metallurgie Holding AG does not intend and assumes no obligation whatsoever to update such forward-looking statements and adapt them to future events or developments.