DGAP-Adhoc: S.A.G. Solarstrom AG receives EUR3.5 million

S.A.G. Solarstrom AG / Key word(s): Agreement 25.04.2014 17:45 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- S.A.G. Solarstrom AG receives EUR3.5 million from release of blocked funds - Pledging of fixed-term deposits in favor of the convertible bond legally insecure - Agreement circumvents lengthy legal dispute - As CEO, Dr. Karl Kuhlmann continues to provide significant support for the restructuring and investor process despite transferring the S.A.G. Solarstrom AG shares he has held up to now Freiburg i. Br., April 25, 2014. S.A.G. Solarstrom AG, German security identification number: 702 100, ISIN: DE0007021008 (presently in insolvency proceedings), and represented by the insolvency administrator Dr. Jörg Nerlich from the legal office of Görg in Cologne, today concluded a settlement agreement with the company BBV Beteiligung, Beratung und Verwaltung GmbH, Bochum, whose sole shareholder is the CEO of S.A.G. Solarstrom AG, Dr. Karl Kuhlmann, as well as a participating bank regarding pledged credit in connection with the 2007/2014 convertible bond, with the consent of the preliminary board of creditors. As a result of this agreement, liquid funds in the amount of EUR3.5 million will be released and made available to the company. The convertible bond was collateralized when it was issued in 2007 according to the bond conditions, in the then full amount of the repayment claim of EUR10 million, by pledging paid capital. The amount currently pledged for outstanding convertible bonds is EUR7,415,500. BBV Beteiligung, Beratung und Verwaltung GmbH holds partial debentures of this convertible bond in the total nominal amount of EUR7,363,500 and had ceded its repayment claims from the convertible bond in this regard as a security to the financing bank. Under the settlement agreement, the parties involved assessed legal uncertainties with regard to the enforceability of BBV Beteiligung, Beratung und Verwaltung GmbH's repayment claim from the convertible bond, against a consensual solution that provides liquidity to the company immediately. The clarification of a right to separation that exists under the insolvency, with regard to the pledged credit, could have led to a longer legal dispute, during which all funds would still remain blocked. Under the agreement, BBV Beteiligung, Beratung und Verwaltung GmbH and the participating bank forgo EUR3.5 million of the repayment claim, after giving notice on the partial debentures held. The remaining EUR3,863,500 will be paid to the financing bank. The company can now use these liquid funds resulting from the release of EUR3.5 million pledged fixed-term deposits. The other creditors involved in the convertible bond are not included in this settlement agreement. In addition, the company BBV Beteiligung, Beratung und Verwaltung GmbH and the financing bank today concluded a separate agreement, under which BBV Beteiligung, Beratung und Verwaltung GmbH has transferred its S.A.G. shares to the bank. This agreement has been concluded in view of the fact that the bank had announced making payable the financing of the share package in light of S.A.G. Solarstrom AG's insolvency. Irrespective of this, Dr. Karl Kuhlmann will continue to provide significant support for the restructuring and investor process as the CEO of S.A.G. Solarstrom AG. He, together with the other Executive Board members, will also continue to work together very closely and in trusting cooperation with the insolvency administrator and the preliminary board of creditors. Contact: S.A.G. Solarstrom AG (presently in insolvency proceedings) Sasbacher Straße 5 79111 Freiburg Germany www.solarstromag.com Public Relations / Investor Relations Jutta Lorberg phone: +49-(0)761-4770-311 e-mail: pr@solarstromag.com / ir@solarstromag.com --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: About S.A.G. Solarstrom AG S.A.G. Solarstrom AG (presently in insolvency proceedings)(German security identification number: 702 100, ISIN:DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent provider of photovoltaic plants configured to customers' individual needs. The Group constructs plants of all sizes both in Germany and abroad. S.A.G. Solarstrom AG also produces solar energy at its own plants. S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of photovoltaic plants, including forecast and energy services, yield reports, and remote service and maintenance, as well as insurance and financing. The Group thus offers a comprehensive value chain in photovoltaics, from yield reports, planning, construction, operations, and monitoring to optimization, repowering, and deconstruction. S.A.G. Solarstrom AG was founded in 1998. Around 170 specialists work at the four locations in Germany and the foreign subsidiaries. S.A.G. Solarstrom AG is listed in the Prime Standard of the Frankfurt Stock Exchange as well as according to the rules and standards M:access of the Munich Stock Exchange. Further information: www.solarstromag.com 25.04.2014 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: S.A.G. Solarstrom AG Sasbacher Str. 5 79111 Freiburg Germany Phone: + 49 761 4770 0 Fax: + 49 761 4770 555 E-mail: mail@solarstromag.com Internet: www.solarstromag.com ISIN: DE0007021008, DE000A1E84A4, DE000A1K0K53, WKN: 702100, A1E84A, A1K0K5 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München (m:access), Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------