Ad hoc: Opening of insolvency proceedings under self-administration

Ad hoc announcement pursuant to Art. 17 of the EU Market Abuse Regulation (MAR)

Hamburg, 1 September 2016. KTG Agrar SE (ISIN: DE000A0DN1J4) announces that, following a decision of the Hamburg District Court delivered today, the insolvency proceedings regarding its assets have opened and that the court also ordered self-administration. KTG Agrar SE is insolvent with debts of approx. € 394 million.

The report of the provisional trustee has been submitted to the Board. As a result of the investigation the provisional trustee determined that write-downs in investments and receivables (including associated companies) of KTG Agrar SE are expected to amount to up to € 222 million and in other assets (here: claims against third parties) around € 169 million. As a result of this, it is foreseeable that the insolvency rate for creditors of KTG Agrar SE will be extremely low; an approximate figure can at this stage not be forecasted.

With regard to the opening of proceedings, a structured M&A process for the agricultural section and for a ca. 50% share packet for KTG Energie AG has been initiated taking into account strategic and institutional interested parties in order to safeguard all restructuring and reprocessing options. Given the results of this investigation, alternative restructuring options are very limited.

At the same time, an interim evaluation of the harvest now underway has shown that the crop yields will be considerably lower than already expected because of adverse weather conditions.