SKW Stahl-Metallurgie Holding AG: SKW presents, in alignment with preliminary custodian and preliminary creditors committee, insolvency plan

Press release

SKW presents, in alignment with preliminary custodian and preliminary creditors committee, insolvency plan

- Intended debt-to-equity-swap by majority creditor Speyside Equity is supposed to result in a substantial debt relief of SKW Group

- Claims of all creditors which are not subordinated, ought to be fully satisfied

- Prompt opening of insolvency procedure expected

- Annual General Meeting on December 6th, 2017 is cancelled

Munich, November 28th, 2017 - The management of SKW Stahl-Metallurgie Holding AG (ISIN DE000SKWM021) has submitted, in alignment with the preliminary custodian and the preliminary creditors committee, an insolvency plan to the competent court of Munich. This plan presents a concept for the financial restructuring of the Company.

For this purpose, it is planned to conduct a capital increase against contribution in kind solely by Speyside Equity Industrial Europe Luxembourg S.à.r.l., Luxemburg, who is by far the largest creditor. It is planned to swap credit claims in the nominal amount EUR 35 Mio. into 950,000 shares of the Company (debt-to-equity-swap), whereby the US-American financial investor would possess 100 percent of the future share capital of SKW Stahl-Metallurgie Holding AG. Prior to this, a capital decrease to zero shall be executed, which will entail a withdrawl of the current shareholders and the delisting of the Company.

Furthermore, the insolvency plan entails a full satisfaction of the claims of all creditors that are not subordinated. The remaining credit claims of Speyside of about EUR 40 Mio. shall remain at the disposal of SKW group as a long-term shareholder loan to finance the current operations. The repayment will be aligned with the liquidity needs of the Company. After completion of all capital measures, SKW Stahl-Metallurgie Holding AG and SKW group will once more, have a positive equity and a gearing-rate in accordance with market standards.

The Company expects the prompt opening of the insolvency procedure. The management had filed for insolvency under self-administration on September 27^th, 2017. After insolvency proceedings have been initiated, a creditors meeting, which will probably be held at the beginning of 2018, will vote on the insolvency plan. In case of approval, only the confirmation of the competent court will still be necessary.

Furthermore the management, in alignment with the preliminary custodian, has cancelled the Annual General Meeting on December 6^th, 2017, which had been scheduled due to the request of MCGM GmbH and other shareholders. This is based on the reasoning that the items on the agenda are unsuitable to restructure the Company and to eliminate insolvency.

Dr. Kay Michel, CEO of SKW Stahl-Metallurgie Holding AG: "We are confident that the meeting of all creditors will approve the insolvency plan. Also, it has to be mentioned that gratifyingly, business operations of SKW's subsidiaries, which are not affected by the insolvency of the Holding, continue without impediments."

Dr. Christian Gerloff (Gerloff Liebler Rechtsanwälte, München), preliminary custodian: "Based on the current situation, the intended debt-to-equity-swap is the only realistic possibility for a substantial and sustainable debt-relief of SKW, and thus to preserve the continued existence of the Company. The intended insolvency plan is also beneficial for the creditors. Because without this insolvency plan, it would not be possible to fully satisfy the insolvency creditors."

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.