Gleiss Lutz advises SKW Stahl-Metallurgie on restructuring and refinancing in insolvency plan proceedings

Gleiss Lutz has extensively advised the listed company SKW Stahl-Metallurgie on its restructuring and refinancing in protective shield and insolvency plan proceedings under self administration.

In its decision of 28 November 2018, the Munich Regional Court dismissed the last of the two appeals against the confirmation of the insolvency plan for SKW Stahl-Metallurgie Holding AG issued by the competent insolvency court on 14 August 2018. The Court granted a corresponding application for approval from the company pursuant to section 253(4) German Insolvency Code. This means that SKW Holding’s insolvency plan is final and binding and can be implemented.

The plan lays down all the measures for the financial reorganisation of the company. The current shareholders withdraw in that the shares in the company held by them will pass to Speyside Equity. The plan also stipulates that after the capital has been reduced to zero, a substantial part of the credit claims that Speyside Equity has against SKW Holding will be converted into equity of the company (debt/equity swap). With the implementation of the capital measures, the SKW share will be delisted. The plan provides for the full financial satisfaction of the claims of the non-subordinated insolvency creditors.

With the amendment of insolvency law by way of the Act for the Further Facilitation of the Restructuring of Companies in 2012, the German legislator made it possible to provide for a debt/equity swap in insolvency plan proceedings even against the will of obstructive shareholders and to use so-called approval proceedings to swiftly execute an insolvency plan against which an appeal has been lodged. These options were successfully used in this case - in the face of fierce opposition from a group of shareholders.

Gleiss Lutz also extensively advised SKW Stahl-Metallurgie on restructuring and (re)financing issues and on stock corporation and capital markets law prior to its insolvency.

 The following team of Gleiss Lutz lawyers, led by Dr. Andreas Spahlinger (partner, restructuring, Stuttgart), advised SKW: Steffen Carl (partner), Dr. Tobias Harzenetter (counsel, both corporate and capital markets, Munich), Dr. Matthias Tresselt (partner, Stuttgart), Sonja Miletzki (Berlin), Dr. Alexander Nagel (Düsseldorf), Dr. Florian Wagner, Joachim Glöckler (Stuttgart, all restructuring), Dr. Helge Kortz (partner), Dr. Thomas Kulzer (counsel, both finance, Frankfurt), Dr. Martin Schockenhoff (partner, corporate, Stuttgart), Dr. Burghard Hildebrandt (partner), Dr. Eva Koch (both constitutional law, Düsseldorf).