DGAP-Adhoc: Hansa Group AG: Important milestone in the company's restructuring

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| Source: EQS Group AG
Hansa Group AG  / Key word(s): Restructure of Company

31.01.2014 18:54

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Hansa Group AG achieves important milestone in the company's restructuring

- Lenders reach agreement on comprehensive debt relief 

- Principal shareholders to make major contribution to company's
recapitalization

- Financial restructuring to be completed by the end of 2014 

- Turnaround in current year, return to significantly positive
earnings expected in 2015
 
 
HANSA GROUP AG announces that it has reached an agreement with all
financing banks as well as key financing partners and Hansa Trust
International AG's principal shareholders regarding a concept for a
sustained financial restructuring of the company. The settlement reached
with the lenders will reduce debt by more than half. Capital measures in
the mid-double-digit million range designed to considerably strengthen the
company's equity are also planned and will be borne to a significant degree
by the principal shareholders.

The implementation of the restructuring plan includes as a first step the
signing of a framework agreement with all parties. As a second step
shareholders will be invited to the Annual General Meeting in order to
approve a part of the proposed capital measures. The Annual General Meeting
will be
held by June, as in previous years. The company plans to implement the
financial restructuring by the end of the year.
 
The company continues to believe that it will be able to achieve the
turnaround at the operating level  during the course of this year, and that
it will generate significantly positive earnings in 2015. The earnings
increase is related both to the financial restructuring as to the
implementation of operational adjustments. The company had identified the
relevant measures jointly with a management consulting firm back in
September of last year. The measures are designed, above all, to increase
operating efficiency and optimize management of the Group as a whole .
Implementation of the operational adjustments is well on track. This will
allow the company to realize cost advantages and strengthen the integration
of subsidiaries into the Group.

The company's medium-term goal remains to assume cost leadership in the
care chemicals market and further raise its competitiveness in the Consumer
Products business in order to further strengthen its position as a 
strategic partner for private-label customers .


31.01.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Hansa Group AG
              Fritz-Henkel-Str. 8
              39307 Genthin
              Germany
Phone:        +49 (0)203-73804-109
Fax:          +49 (0)203-73804-309
E-mail:       silvia.kostova@hansagroup.de
Internet:     www.hansagroup.de
ISIN:         DE0007608606
WKN:          760860
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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