KTG Agrar : Ad-hoc-Disclosure Restructuring and Financial Reorganisation of KTG Agrar SE within ESUG

Ad-hoc-Disclosure (publication of insider information according to article 17 MAR)

Hamburg, 5 July 2016. The executive and supervisory boards of KTG Agrar SE (ISIN: DE000A0DN1J4) have, after detailed and careful consideration, decided to carry out a restructuring and financial reorganisation process of KTG Agrar SE within the framework of the possibilities offered within ESUG (law to further simplify the financial reorganisation of companies).

Accordingly, a request for the commencement of insolvency proceedings by way of personal management was filed and accepted by the responsible local court. They have appointed a restructuring expert attorney Mr. Stefan Denkhaus from Sozietät BRL Boege Rohde Luebbehuesen as the provisional administrator. Subsidiaries of KTG Agrar SE are not affected by this request.

The aim of this process is to sustainably restructure the group in order to allow business to continue. This process will take place in close coorperation with creditors. For this purpose, the company will work on a restructuring plan in the coming months. The supervisory board will appoint a Chief Restructuring Officer (CRO), attorney Jan Ockelmann from Sozietät JOHLKE Rechtsanwälte to the supervisory board of KTG Agrar SE. He has longstanding contacts with agricultural companies and advisers. He has also many years' experience as an insolvency administrator and is familiar with the peculiarities of the process of self-administration.

The trigger for these financial difficulties and the resulting decision to restructure and financially reorganise KTG Agrar SE within the framework of ESUG was the interest payment of the bond KTG Biowertpapier II (ISIN DE000A1H3VN9) from 2011. The bearer bond has a volume of 250 million Euro with an interest rate of 7.125 percent pa. The pending interest payment of 17.8 million Euro on 6 June 2016 could not be made.

Operationally, the company will carry on, particularly with the view to the harvesting season on more than 45,000 hectar land. To cover remuneration and salary payments, an insolvency advance payment has been applied for. The aim of the involved parties is to ensure the future of the company and KTG Group long term and to secure as many jobs as possible. The board and interim administrator will look at available options and work on a financial reorganisation plan in coordination with the principal creditors.

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