SKW Stahl-Metallurgie insolvency proceedings opened, custodian named

By Caroline Salls

Pittsburgh, Dec. 1 – Insolvency proceedings were opened for SKW Stahl-Metallurgie Holding AG, and Christian Gerloff of Gerloff Liebler Rechtsanwalte Munchen was appointed as custodian, according to a news release.

SKW said the opening of the insolvency proceeding was expected. On Sept. 27, SKW’s management filed for insolvency under self-administration.

As a next step, the company said its creditors will be asked to vote on the insolvency plan during a creditors’ meeting at the beginning of 2018. If the creditors approve the plan, insolvency court confirmation will be required.

Despite weakness of the dollar, SKW said its third-quarter results indicate that the group generated revenues of €196.1 million in the first nine months of the year, up from €178.9 million for the same period of 2016.

SKW said it finished the first nine months of this year with a loss from continuing operations after taxes of €2.7 million, narrowing from a €12.4 million loss for the first nine months of last year.

“The nine-month figures show that SKW group now is operationally well positioned in the market,” chief executive officer Kay Michel said in the release.

“Thus, we are confident that we can use our chances in our core markets and can strengthen our position in the competitive environment.

“This operational progress will be considerably supported by the intended financial restructuring of SKW Holding.”

The company said it still estimates that group revenue for 2017 will be about €250 million, and adjusted EBITDA will be at least €12 million.

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

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