DGAP-Adhoc: schlott gruppe Aktiengesellschaft: Continued existence of debt financing at risk

schlott gruppe Aktiengesellschaft  / Key word(s): Capital Reorganisation

15.01.2011 00:56

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

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schlott gruppe: Continued existence of debt financing at risk

Freudenstadt, January 14, 2011. schlott gruppe AG has suffered a severe
setback today in its restructuring process.

As communicated several times, schlott gruppe AG has been in an extensive
restructuring process since 2009. Even if reducing the costs could be
reached to the full intended extent in the financial year 2009/10, the
development of the market and the related pricing pressure in the market
have taken a more negative development than expected and have put the
earning rates under an enormous pressure. As a result, the company figures
in the last months of the financial year 2009/10 have developed worse than
assumed in the financial planning on which the current financing had been
based. As also already published, the basis for the current restructuring
and the underlying financing was the business model derived from the former
restructuring schedule. As customary in such situations, the creditors have
an extraordinary right to terminate the relevant loan agreements in case
the company figures fall below the business planning. As a further
consequence, a material writing down of goodwill is expected in the
consolidated annual statements for the financial year 2009/10. The exact
amount, however, has not yet been decided upon.

As a reaction to such market developments, in autumn 2010 schlott gruppe AG
together with external advisors has developed a concept for strategically
repositioning the company as well as a corresponding financing concept.
Besides a substantial capital increase this financing concept comprises
further extensive concessions with respect to debt capital. In the course
of these negotiations the repayment of due bank liabilities has been
deferred. Despite the intensive and promising negotiations in the last few
months with both the providers of equity capital and of dept capital the
company today has been informed that the negotiations with a potential
equity capital provider have not been successful.

On Monday next week a meeting with the financing partners on the debt
capital-side will take place in Nuremberg in order to discuss the next
steps and measures to be taken. In case some financing partners will
exercise their right to extraordinarily terminate the respective loan
agreements, schlott gruppe AG will not be able to service such debts.

schlott gruppe AG
The Management Board


schlott gruppe AG
Marco Walz
Investor Relations & PR
Wittlensweilerstraße 3
72250 Freudenstadt
GERMANY
Phone: +49 7441 531-230
Fax  : +49 7441 531-204 
marco.walz@schlottgruppe.de
www.schlottgruppe.de 




15.01.2011 DGAP's Distribution Services include Regulatory Announcements, 
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Language:     English
Company:      schlott gruppe Aktiengesellschaft
              Wittlensweilerstraße 3
              72250 Freudenstadt
              Deutschland
Phone:        +49 (0)7441 531-230
Fax:          +49 (0)7441 531-204
E-mail:       marco.walz@schlottgruppe.de
Internet:     www.schlottgruppe.de
ISIN:         DE0005046304
WKN:          504630
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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