Shiloh Industries, Inc. Amends Agreement with Bank Lenders to Provide Additional Financial Flexibility as It Resumes Production Across Its Global Operations

Shiloh Industries, Inc. (NASDAQ: SHLO) (the “Company”) an environmentally focused global supplier of lightweighting, noise and vibration solutions, announced today that the Company and certain of its subsidiaries have reached an agreement with their bank lenders on certain amendments to the Company’s credit agreement. Among other things, the amendments provide certain covenant relief as the Company continues to resume production across its global operations.

The entire automotive sector has been impacted by OEM production shutdowns in recent months. Shiloh and its management team have taken proactive steps expected to protect the Company’s liquidity and enable it to successfully navigate the current environment. Recent actions include realigning capital expenditure plans for the changing business environment, significantly reducing discretionary spending across the entire Company, and temporarily reducing salaries and benefits during the lowest period of customer demand. Shiloh now has safely restarted nearly all of its global production facilities as the Company ramps up production to continue to serve customers. As Shiloh’s North American and European employees increasingly return to work, the Company has established new safety protocols, including acquiring and distributing PPE for returning employees, completing preventive maintenance to ensure optimal performance at start-up, reviewing inventory to ensure sufficient levels and prioritizing schedules based upon customers’ return to production.

“We are pleased to reach this agreement with our lenders, which ensures liquidity and additional financial flexibility as we continue to navigate the current environment,” said Cloyd J. Abruzzo, Interim Chief Executive Officer. “In recent months, we have responded to the changing environment and the impact of COVID-19 with decisive action to pull back production and preserve liquidity across our global organization. As we now take steps to safely resume production to support our customers, we are also continuing discussions with our lenders seeking an appropriate capital structure to support the Company’s operations over the long term.”

The Company also announced today that Anna Phillips has been elected as a new independent director on the Company’s Board of Directors. Ms. Philips will join the Audit Committee and a newly formed Special Committee that is assisting in the refinancing efforts.

“Anna Phillips is a welcome addition to Shiloh’s Board of Directors,” said Curtis E. Moll, Chairman of the Board. “She brings significant financial expertise and experience advising companies on strengthening their balance sheets, and I am confident she will be a valuable contributor to the Board as the Company continues to takes steps to weather the current environment.”