Pfleiderer, Creditors Sign Restructuring Contracts

Neumarkt, Germany, May 13, 2011 -- Pfleiderer AG said it has agreed with its creditors on the financial details of the company's restructuring and has signed the relevant contracts.

The contents of the contracts include the creditors' waiver of their claim to financial receivables (excluding the Eastern Europe financing group) equal to 40% of the utilized credit lines, plus part of the accrued interest and fees.

This represents an amount of approximately $542 million.

Also, the creditors will provide Pfleiderer with an additional credit line of $142 million this month in the form of a first-lien secured loan. Half of the super senior loan is to be repaid after the capital changes have been carried out.

At a special meeting in July, Pfleiderer's Executive Board and the Supervisory Board will recommend that a massive capital reduction be carried out that will result in shareholders holding initially about 1% of Pfleiderer's share capital.

The company also plans to raise $142 million in capital, with 60% to be contributed by the creditors and 40% by shareholders of Pfleiderer AG or by other third parties.

When the capital increase is completed, the creditors will hold at least 80% of the increased share capital of Pfleiderer AG.