SKW Stahl-Metallurgie gets non-binding restructuring letter of intent

By Caroline Salls

Pittsburgh, June 28 – SKW Stahl-Metallurgie Holding AG’s executive board said the Indian Somani Group submitted a non-binding letter of intent to become a shareholder in the company in the context of a financial restructuring.

According to a news release, Somani’s proposal says a restructuring transaction should entail a significant reduction of the registered capital and a subsequent capital increase against cash with subscription rights for shareholders.

The letter of intent stipulates that the execution of the capital increase against cash would be guaranteed by the Somani Group under the condition that the Somani Group holds at least 51% of the shares SKW after the transaction.

The Somani Group also believes the execution of a transaction would require key providers of debt capital to participate in the financial restructuring by their own contributions.

SKW’s supervisory and executive boards said the company’s largest shareholder offered to begin talks with the Somani Group about a participation in a transaction.

The board said they will assess the transaction as well as alternatives for a financial restructuring.

SKW is based in Unterneukirchen, Germany, and makes specialty chemicals for the steel industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.