- SKW Metallurgie receives an amount of EUR 3.35 Mio. from D&O-Insurer, which will be directly cash-effective; as well as waiver of former CEO of her right to have the 50 per cent reduction of her pension rights judicially reviewed, resulting in a positive accounting effect in the amount of approximately EUR 1.75 Mio.
- ultimate settlement, mutually without acknowledging any legal obligations
- avoidance of long and expensive legal disputes
- approval of the general assembly is prerequisite for the amicable settlement becoming effective
- SKW Metallurgie group of companies is now focusing on future challenges
The amicable settlement, the effectiveness of which is conditioned on the approval of the general assembly of SKW Stahl-Metallurgie Holding AG, does not contain any acknowledgement of any legal obligations for either party and otherwise contains the following major points:
- The D&O-Insurer will pay a total amount of EUR 3.35 Mio. to SKW group of companies.
- The former CEO waives her right to have the 50 per cent reduction of her pension rights (to be resolved by the supervisory board) judicially reviewed, resulting in a positive accounting effect in the amount of approximately EUR 1.75 Mio. for SKW
- The Company undertakes to abandon its liability claim for damages pending at Landgericht Traunstein and undertakes to refrain from raising further claims against former members of the management board.
- The former members of the management board waive any potential rights to receive payment of a bonus based on a long-term-incentive program, respectively to compensation for a post-contractual non-compete obligation.
The amicable settlement, which has now been reached, is in the best interest of SKW group of companies and its shareholders. The payment by the insurer will be directly cash-effective and can thus be counted as a contribution by SKW to the reduction of its financial debt. Furthermore, the payment of the insurer and the reduction of the pension claims will have positive effects on the income of SKW group of companies and will strengthen its equity.
In any case, to continue these legal proceedings would have resulted in significant risks and costs connected to long and complex legal proceedings. This amicable settlement, on the other hand, enables SKW to focus once again on its future. Management board and supervisory board will recommend to the general assembly to approve the amicable settlement.
The SKW group of companies will direct all its energy towards meeting the challenges of the ongoing steel-crisis, and to consequently implement the efficiency enhancement program ReMaKe, as well as to further advance the financial restructuring of SKW group of companies.
SKW Stahl-Metallurgie Holding AG
Phone IR/Press: +49 89 5998923-0
Fax: +49 89 5998923-29
About SKW Stahl-Metallurgie Holding AG and the SKW Metallurgie Group
The SKW Metallurgie Group is a global market leader for chemical additives for hot metal desulphurization and for cored wire and other products for secondary metallurgy. The Group’s products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world's leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US, Canada, Mexico, Brazil, South Korea, Russia, the Peoples' Republic of China and India (joint venture). Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange's Prime Standard since December 1, 2006; since 2011 (conversion to name shares) with ISIN DE000SKWM021.
This press release may include certain forward-looking statements which are based on currently available assumptions and predictions of the SKW Metallurgie Group‘s management as well as on other currently available information. Various identified as well as unidentified risks and uncertainties as well as other factors may result in a deviation of actual results, financial situation, development or achievement of the company compared to the assessments made herein. SKW Stahl-Metallurgie Holding AG does not intend and assumes no liability to update such forward-looking statements and to adjust them to future events and developments.