MIFA: Investment agreement with Indian bike manufacturer HERO concluded, equity investment pursuant to capital increases from authorised capital

Sangerhausen, (PresseBox) - .
- Investment agreement with OPM Global B.V., a subsidiary of Hero Cycles Ltd., about an equity capital investment in the amount of EUR 15 million concluded
- FERI EuroRating Services AG reduced issue rating of corporate bond
- Annual General Meeting expected for third quarter of 2014

MIFA Mitteldeutsche Fahrradwerke AG ("MIFA", German security identification number: A0B95Y, ISIN: DE000A0B95Y8) announces that the company OPM Global B.V., a subsidiary of Hero Cycles Ltd. ("HERO"), has entered into a general commitment today as part of an investment agreement to underwrite capital increases in cash in the amount of EUR 15 million from MIFA's existing authorised capital and thus invest up to EUR 15 million of equity into MIFA. The cash capital increases shall comprise a 10% capital increase with subscription rights being excluded and a subsequent rights issue with a total number of 4.9 million new shares to be issued. OPM Global B.V. has undertaken to subscribe all such shares which together with additional existing shares to be transferred from certain existing shareholders would result in an overall participation of the investor of up to 47 %. The investment commitment by OPM Global B.V. entails significant financial contributions of MIFA's financing partners and is subject to various conditions precedent, especially to the condition of a haircut in the amount of EUR 15-20 million of the bondholders as well as an exemption from the German Financial Supervisory Authority (BaFin) from the obligation to make a public takeover offer under the The German Securities Acquisition and Takeover Act.

FERI EuroRating Services AG, which MIFA mandated to prepare an issue rating for the corporate bond that it issued in August 2013, notified MIFA that it has reduced the "B-" issue rating to "CC".

In addition, MIFA announces that this year's Annual General Meeting of the company is expected to be postponed until the third quarter of 2014 due to the delayed publication of the annual financial statements.

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