DGAP-News

SKW Stahl-Metallurgie Holding AG: SKW Metallurgie creates base for financial restructuring and strategic repositioning

DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Financing SKW Stahl-Metallurgie Holding AG: SKW Metallurgie creates base for financial restructuring and strategic repositioning 01.02.2017 / 13:44 The issuer is solely responsible for the content of this announcement. * Negotiations with financing banks concluded successfully * Continuation of syndicated loan contract until January 31, 2018 * AGM to move on capital increase on July 6, 2017 * CEO Dr. Kay Michel remains aboard until 2020

München (Germany), February 1, 2017. The SKW Metallurgie Group (WKN SKWM02
/ ISIN DE000SKWM021), globally leading provider of primary and secondary
metallurgy solutions for the steel industry, has successfully concluded the
negotiations with the lenders of the syndicated loan (the main instrument
of financial debt of the SKW Metallurgie Group) and has thereby created the
fundament to implement the announced financial restructuring.
The SKW Metallurgie Group agreed with the three lending banks of the
syndicated loan in now legally binding terms that this financial
instrument, subject only to market-common adjustments, remains in force
until January 31, 2018 and that during this term financial covenants and
minimum redemptions remain halted.

The SKW Metallurgie Group will use the headroom created thereby on the one
hand to continue the operative performance improvement of the ongoing
"ReMaKe" program and on the other hand to implement a comprehensive
financial restructuring, which is comprised of the known three pillars:
* Disposal of assets (mainly non-core activities)
* General preparedness of financing banks for a conditional cancelation of
debt

* Substantial capital increase against cash with subscription rights for
shareholders

These measures will return the indebtedness of the SKW Metallurgie Group to
an economically viable relation to its earnings potential, which fact is a
necessary condition for the strategic and operative development of the
Company as well as for a refinancing.

An overall component of this concept is the already initiated approach of
strategic partners to jointly develop the business and to strengthen the
competitive position through realizing synergy potentials. In this context,