SKW Stahl-Metallurgie Holding AG: no alternative to planned financial restructuring by means of an insolvency plan available

Press release

SKW Holding: no alternative to planned financial restructuring by means of an insolvency plan available

- General meeting resolves on changes in the supervisory board

München, May 18th, 2018 - There is no alternative to the financial restructuring of SKW Stahl-Metallurgie Holding AG by means of an insolvency plan. On today's general meeting in Munich, the group of shareholders surrounding the member of the supervisory board Dr. Olaf Marx, who have convocated the general meeting according to sec. 122 para. 3 sentence 1 German Stock Corporation Act ("AktG") have despite repeated requests by the CEO, the supervisory board and the shareholders not produced a viable alternative concept for the financial restructuring of the Company.

On December 1, 2017, insolvency proceedings under self-administration have been initiated in respect of the Company. The insolvency plan which has already been submitted provides - as already communicated - for a swap of a substantial part of SKW Group's debt (in the nominal amount of approximately EUR 76 Mio.) purchased by the US-Investor Speyside Equity into equity, associated with the current shareholders exiting the Company. The debt which is kept by Speyside will be converted into a long-time shareholder loan for the Company.

Dr. Kay Michel, CEO of SKW Stahl-Metallurgie Holding AG, highlighted the advantages of the insolvency plan as follows: "SKW is maintained as a group and has the chance to continue its professional up-wards trend with a balance sheet which is now healthy again. Up to know, we have managed to continue the business operations in our subsidiaries despite the insolvency of SKW Holding without considerable impediments. Customers and business partners remain loyal to our Company."

Addressing the group of shareholders which are massively opposing the insolvency plan, Dr. Michel announced: "In the interest of employees and customers, the management team of SKW will exercise its best efforts to make sure that SKW group of companies is preserved and the change for the better is not scattered by further irresponsible acts of Dr. Marx and his associates."

The shareholders have, among other things, decided to reduce the current supervisory board from six to four members. Dr. Eva Nase und Mr. Estanislao Urquijo have been newly elected to the supervisory board. The current members Dr. Alexander Kirsch (Chairman), Volker Stegmann, Titus Weinheimer and Dr. Peter Ramsauer have been dismissed.

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.