Pfleiderer Bond Holders Approve Swap for Shares

Neumarkt, Germany, June 21, 2011 -- The holders of a hybrid bond issued by Pfleiderer have approved the proposal submitted by the management that they swap their bonds for the right to acquire shares.

The company said the financial restructuring of the group continues to be on schedule.

The decision paves the way for the necessary approval by the general meeting on July 21.

The decision means that the holders of the hybrid bond, which was issued 2007, waive their claims in full. In return they will be granted the right to aquire a 4% share of the equity capital after the capital increase.

Today's waiver, added to the accumulated unpaid interest, is tantamount to further debt relief for the Pfleiderer Group, the company said.

The implementation of the restructuring plan is expected to last well into the second half of 2011, and possibly even into the first quarter of 2012, the company said.