DGAP-Adhoc: MIFA applies for insolvency proceedings in self-administration

MIFA Mitteldeutsche Fahrradwerke AG  / Key word(s): Insolvency/Restructure of
Company 

29.09.2014 13:01

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

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MIFA applies for insolvency proceedings in self-administration

Sangerhausen, 29 September 2014 - The board of management of MIFA
Mitteldeutsche Fahrradwerke AG (WKN: A0B95Y / ISIN: DE000A0B95Y8; 'MIFA')
filed an application today to open insolvency proceedings in
self-administration pursuant to Section 270a of the Insolvenzordnung
(insolvency code) InsO with the relevant district court of Halle (Saale) to
enable it to continue the restructuring process of MIFA itself. The
operative business of MIFA remains unaffected and will continue as planned.

An essential part of the basic agreement that was concluded on 22 August
with OPM Global B.V., a subsidiary of the Indian bicycle manufacturer Hero
Cycles Ltd. and One Square Advisory Services GmbH, the joint representative
of all bond creditors of the MIFA bond 2013/18 (WKN: A1X25B / ISIN:
DE000A1X25B5), to financially restructure MIFA could not be implemented as
pledged. In view of this, the board of management of MIFA decided today to
apply for insolvency proceedings in self-administration to continue the
restructuring process of MIFA on its own and ensure trouble-free
continuation of operative business.

Provided that the district court consents to the application for
self-administration, the MIFA board of management will be provided with a
preliminary custodian (Sachwalter). Business responsibility remains in the
hands of the board of management and the present sole managing director,
Dr. Stefan Weniger, will be joined by Thomas Mayer on 1 October as
announced who has responsibility for operative business. The board of
management will continue the business operations of MIFA to the full extent
and will initiate a sales process without delay. The board of management
together with the creditors and the works council will agree on a
restructuring plan in the next few weeks; in particular the plan will
contain the necessary restructuring steps and form the basis of
restructuring MIFA. MIFA will inform its workforce about the current
situation today. The wages and salaries of the present staff of around 600
are guaranteed for three months through the Bundesagentur für
Arbeit (federal employment agency).


Contact:

Mark Appoh
cometis AG
Unter den Eichen 7
65195 Wiesbaden
Telephone: 0611-205855-21
Fax: 0611-205855-66
Email: appoh@cometis.de


29.09.2014 The DGAP 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:      MIFA Mitteldeutsche Fahrradwerke AG
              Kyselhäuser Straße 23
              06526 Sangerhausen
              Germany
Phone:        03464-5370
Fax:          03464-537251
E-mail:       b.mirau@mifa.de
Internet:     www.mifa.de
ISIN:         DE000A0B95Y8, DE000A1X25B5
WKN:          A0B95Y, A1X25B
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Hamburg, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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