Chiho Environmental Group Limited increased equity capital of Scholz Recycling GmbH
Chiho Environmental Group Limited increased equity capital of Scholz Recycling GmbH
· EUR 80m cash capital increase at Scholz Recycling GmbH
· Use of proceeds: repayment of a EUR 59m senior bridge loan and meet working capital requirements
· Scholz getting back on track to fully deploy its operational capabilities
Scholz Group (“Scholz” or “the Group”), a leading European scrap recycler and one of the largest recycling companies for ferrous and non-ferrous metal worldwide, today announced that Chiho Environmental Group Limited (“CEG”, formerly Chiho-Tiande Group Ltd.) increased the equity of Scholz Recycling GmbH via a EUR 80m cash capital increase. The amounts are used to repay a EUR 59m senior bridge loan due at the end of June 2017. The additional EUR 21m will be used to meet working capital requirements of Scholz Recycling GmbH. The capital increase was made through Chiho Renewables International Holding Ltd., a direct and fully owned subsidiary of CEG.
“The capital increase is another significant step to stabilize Scholz and considerably reducing its leverage. It demonstrates CEG’s continued strong support to the Group”, said Henry Qin, CEO of Scholz Recycling GmbH. “After a year of successful operative and financial restructuring, Scholz is getting back on track. Going forward the Group will be able to fully deploy its operational capabilities and maximize its trade financing in order to regain volume and grow the business. This is the foundation of a stable future of our business.”
Scholz now has the opportunity to continue on its growth path on the basis of a self-standing financial stability backed by the commitment of its long-term strategic owner CEG.
About Scholz
A member of Chiho Environmental Group, Scholz is a leading European scrap recycler with an impressive regional presence in Germany, Poland, Austria, the Balkans, the Czech Republic, Denmark, the United States of America and Mexico. Furthermore it is internationally one of the largest recycling companies for ferrous and non-ferrous metal.
For further information please contact:
FTI Consulting – Strategic Communications
Dr Hartmut Vennen
Phone: +49 (0) 69 92037 137
E-Mail: hartmut.vennen@fticonsulting.com
FTI Consulting – Strategic Communications
Daniel Herbert
+49 (0) 69 92037 183
E-Mail: daniel.herbert@fticonsulting.com
