Pfleiderer creditors agree to extend standstill agreement
Pfleiderer buys time with creditors
Neumarkt -- Pfleiderer AG hereby announces that the boards of all its creditors have approved the extension of the standstill agreement until May 9, 2011. This allows for the contractual implementation in binding form of the key points of the Group's financial restructuring that were at first agreed upon with its creditors' negotiating committee on March 18, 2011. Among other things, the new standstill agreement provides for the suspension of interest payments and capital repayments.

The restructuring concept aims to achieve a significant reduction in the Pfleiderer Group's debt and a return to an appropriate and sound equity base. It stipulates that Pfleiderer AG will receive further loans of 100 million euros from the banks and funds involved, which will secure the Group's financing while it implements its financial restructuring.

The concept's key points include a contribution from the banks and other creditors in the form of the waiver of a significant proportion of their credit receivables. The hybrid bond of Pfleiderer AG, which is classified as equity, is to be exchanged after being cut for a minority equity interest in the company. The package also calls for a massive reduction in share capital followed by a capital increase in which the creditors can participate and acquire a majority stake. In this way, the company is to receive a cash injection of 100 million euros. The existing shareholders of Pfleiderer AG are to receive subscription rights for a small part of the targeted capital increase. In addition, the issue of an option bond is also planned. The exact details of the capital measures that the company will recommend have not yet been decided upon.

The implementation of the concept is subject to the legal conclusion of the relevant agreements, the approval of the company's Annual Shareholders' Meeting for the planned capital measures, and the approval of the holders of the hybrid bond.

Following the successful completion of negotiations with the creditors on the restructuring concept and the key points of the financing, Mr. Ernst Pelzer has decided to take on a new position outside the Pfleiderer Group. He has therefore resigned from the Executive Board of Pfleiderer AG as of March 31, 2011.

Hanno C. Fiedler, Chairman of the Supervisory Board: "Through his activities, Mr. Pelzer has made a significant contribution to the operational and financial restructuring of the Pfleiderer Group. We thank Mr. Pelzer for his great commitment and his successful efforts for our company."

SOURCE: Pfleiderer AG

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