Scholz AG agrees on extensive standstill agreement with financing parties

Essingen, (PresseBox) - .

- All repayments of will be suspended until the end of 2014
- Negotiations about fresh-money facility in final stage
- CEO Oliver Scholz: "Milestone for restructuring of Scholz Group achieved"

Scholz Group has agreed on an extensive standstill agreement with its financing parties. It is implied that all repayments will be suspended until the end of 2014. The agreement has been concluded with the financing banks, real-estate financiers, promissory noteholders as well as factoring banks of Scholz AG. The credit insurance companies have also signaled to positively support the agreement. In addition, the core banks are willing to provide a credit line in a mid- double digit million range in order to support the operating business of the Group. The respective negotiations are in an advanced stage.

The bond of in total EUR 182.5mn (ISIN: AT0000A0U9J2/WKN: A1MLSS), which was issued in 2012 and matures in 2017, is not affected by the financial restructuring.

Oliver Scholz, Chief Executive Officer (CEO) of Scholz AG: "The agreement is a milestone in the restructuring process of our group. The fact, that after intensive and very complex negotiations all lenders agreed to provide some more financial flexibility, shows that our concept is sustainable and promising for the restructuring and realignment of our group. The agreement is the precondition to secure in a second step the funding of the operating business as well as to strengthen the equity base of Scholz AG."

The operating restructuring concept, which has been developed together with Roland Berger Strategy Consultants, is focusing on the business of ferrous and nonferrous scrap recycling (Ferrous/NonFerrous-recycling) and the disposal of non-core units (aluminum production, stainless steel trading) combined with a significant reduction of group's complexity and respective cost savings.

The proceeds from divestments shall mainly contribute to reduce the net debt of the group (currently approx. EUR 1 bn) significantly until the end of 2015. The major deleverage effect shall already be achieved in 2014. The budget includes a leverage ratio (relation of group net debt to operating profit EBITDA) below four after the successful restructuring.

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