CONSENT SOLICITATION STATEMENT DATED NOVEMBER 24

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the contents of
this document or the action you should take, you are recommended to seek your own financial advice immediately from your stockbroker,
bank manager, accountant, or independent financial advisor.
CONSENT SOLICITATION STATEMENT DATED NOVEMBER 24, 2006
SCHEFENACKER AG
Solicitation of Consents to Supplemental Indenture
_____________________________________________
9 1/2% Senior Subordinated Notes Due 2014
(ISIN No.: XS0185387841; Common Code: 018538784
ISIN No.: XS0185385712; Common Code: 018538571)
€200,000,000 principal amount outstanding
___________________________________________
THE SOLICITATION WILL EXPIRE AT THE EARLIER OF (I) 5:00 P.M. LONDON TIME ON DECEMBER 8, 2006
AND (II) THE TIME AT WHICH THE EFFECTIVENESS ANNOUNCEMENT (AS DEFINED BELOW) IS MADE,
UNLESS EXTENDED BY THE COMPANY (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE
"EXPIRATION TIME"). IF THE REQUISITE CONSENTS HAVE NOT BEEN RECEIVED AT OR PRIOR TO THE
EXPIRATION TIME, THE COMPANY MAY, IN ITS SOLE DISCRETION, TERMINATE THE SOLICITATION OR
EXTEND THE SOLICITATION UNTIL THE REQUISITE CONSENTS HAVE BEEN RECEIVED. CONSENTS MAY BE
REVOKED PRIOR TO THE EXPIRATION TIME ON THE TERMS AND CONDITIONS SET OUT IN THIS
STATEMENT - SEE "THE SOLICITATION - REVOCATION OF CONSENTS."
SOWEIT DIE VORSCHLAGSFRIST NICHT VON DER GESELLSCHAFT VERLÄNGERT WIRD, ENDET DER
VORSCHLAG (I) ZUM 8 DEZEMBER 2006, 17:00 LONDONER ORTSZEIT (18:00 UHR MITTELEUROPÄISCHER
ZEIT), ODER (II) ZUM ZEITPUNKT DER WIRKSAMKEITSERKLÄRUNG (EFFECTIVENESS ANNOUNCEMENT)
(WIE NACHSTEHEND DEFINIERT), WOBEI AUF DEN JEWEILS FRÜHEREN ZEITPUNKT ABZUSTELLEN IST
(DAS ENDE DER EVENTUELL VERLÄNGERTEN VORSCHLAGSFRIST WIRD NACHSTEHEND ALS
"VERFALLSTAG" BEZEICHNET). SOLLTEN DIE ERFORDERLICHEN ZUSTIMMUNGEN NICHT BIS ZUM
VERFALLSTAG ERTEILT WORDEN SEIN, KANN DIE GESELLSCHAFT NACH ALLEINIGEM ERMESSEN DEN
VORSCHLAG ZURÜCKZIEHEN ODER DIE VORSCHLAGSFRIST VERLÄNGERN, BIS DIE ERFORDERLICHEN
ZUSTIMMUNGEN ERTEILT SIND. DIE ZUSTIMMUNGEN KÖNNEN GEMÄSS DEN BESTIMMUNGEN DIESER
ERKLÄRUNG VOR DEM VERFALLSTAG WIDERRUFEN WERDEN - SIEHE ABSCHNITT "THE SOLICITATION REVOCATION OF CONSENTS".
HINWEIS: ANNEX 1 ENTHÄLT EINE UNVERBINDLICHE DEUTSCHE ÜBERSETZUNG DES FOLGENDEN
SOWIE DES ABSCHNITTS "BACKGROUND AND PURPOSE OF THE SOLICITATION".
MAßGEBLICH SIND JEDOCH ALLEIN DIE ENGLISCHEN TEILE DIESES DOKUMENTS.
Schefenacker AG, a private stock company incorporated under the laws of Germany (the "Company"), is soliciting (the
"Solicitation") consents (such consents taken together the "Consents") from and by holders ("Holders") of the outstanding
€200,000,000 aggregate principal amount of its 9 1/2% Senior Subordinated Notes due 2014 (the "Notes") to the execution of a third
supplemental indenture (the "Third Supplemental Indenture") to the indenture dated as of February 11, 2004 pursuant to which the
Notes were issued (the "Indenture"), among the Company, the guarantors party thereto, and The Bank of New York, as trustee (the
"Trustee"). In the alternative, the Company is seeking a waiver and consent to enter into a supplemental indenture, as described
below. The Company is seeking Consents to the entire Solicitation as a single proposal.
The Company has been discussing with its creditors a possible restructuring of its financial indebtedness. In that regard, it is
considering a "migration" of all of the Company's properties, assets and obligations from the Company to Schefenacker PLC, a newly
incorporated English company (the "Successor Issuer"), in order to assist a consensual restructuring. The migration would result in
the succession of the Successor Issuer to all of the Company's properties, assets and obligations (the "Succession") pursuant to German
universal succession laws.
Subject to the conditions to effectiveness described below, the Company is seeking Consents from Holders of the Notes to the
Solicitation in order to amend Section 5.01(b)(iii) of the Indenture to expressly permit the Succession under Article Five of the
Indenture notwithstanding that, immediately after giving effect to the Succession on a pro forma basis, the Successor Issuer would not
be able to incur at least €1.00 of additional Debt (other than Permitted Debt) in compliance with the fixed charge coverage ratio
provision of the "Limitation on Debt" covenant. Following such amendment, the Successor Issuer, all the guarantors party to the
Indenture (the "Guarantors") and the Trustee will execute a further supplemental Indenture (the "Fourth Supplemental Indenture")
by which the Successor Issuer expressly assumes all of the Company's obligations under the Notes and the Indenture and the
Guarantors confirm their respective guarantees.
The Solicitation is being made on the terms and is subject to the conditions set forth in this Consent Solicitation Statement
(the "Statement"). The effectiveness of the Solicitation and the execution of the Third Supplemental Indenture is conditional on the
receipt of Consents of Holders of a majority in aggregate principal amount of the Notes (the "Requisite Consents"). If and when the
Requisite Consents have been delivered and not revoked, the Company shall make a public announcement by issuing a press release to
the effect that the Requisite Consents have been obtained and the Third Supplemental Indenture has been executed (such
announcement, the "Effectiveness Announcement"), a copy of which will be made available as soon as practicable on the Company's
website (www.schefenacker.com). The Company, the Guarantors and the Trustee will enter into the Third Supplemental Indenture
immediately prior to the making of the Effectiveness Announcement. The Solicitation will expire upon the making of the Effectiveness
Announcement.
In order to preserve the prospect of implementing a consensual restructuring, the Company believes it needs to retain the
flexibility to migrate if it concludes that migration is in the best interests of the Holders and needs to be carried out immediately in
order to preserve any value for Holders, even though the Requisite Consents have not been obtained. Migration before the Requisite
Consents have been obtained may constitute an event of default under the Indenture. By delivering their Consents and not revoking
them, either before or after Succession has occurred, Holders will be consenting in the alternative to a waiver of any event of default
arising out of the Succession prior to obtaining the Requisite Consents and the entry into a supplemental indenture.
If the Requisite Consents are not received prior to the occurrence of migration, the Successor Issuer and the Guarantors will,
at or prior to the occurrence of migration, execute an Instrument of Assumption, Acknowledgement and Affirmation (the "Instrument
of Assumption") by which the Successor Issuer will, upon completion of the migration, expressly assume all of the Company's
obligations under the Notes and the Indenture and the Guarantors will confirm their respective guarantees of the Successor Issuer's
obligations under the Notes and the Indenture. If and when the Requisite Consents are obtained following Succession, the Solicitation
will become effective, the Successor Issuer, the Guarantors and the Trustee will execute a supplemental indenture which will
supersede the Instrument of Assumption, and the Company will issue the Effectiveness Announcement.
Consents may be revoked by Holders at any time at or prior to the Expiration Time. If the Solicitation becomes effective,
each present and future holder of the Notes will be bound by the Third Supplemental Indenture, whether or not such Holder delivered a
Consent. Revocations must be made according to the established procedures of revocation in place at Euroclear and Clearstream (as defined
herein) respectively. Holders who consent to the Solicitation thereby agree not to sell, transfer or assign any of their Notes, any interest
therein or any claim such Holders may have against the Company based upon their ownership of Notes to any person unless such person,
prior to any such sale, transfer or assignment, agrees in writing to be bound by the Solicitation as if such person had consented to the
Solicitation, unless and until (i) the Expiration Time, (ii) the Company announces that the Solicitation has been terminated without
completion or (iii) the Holder revokes his consent prior to the Expiration Time.
The Company strongly recommends that Holders consent to the Solicitation in the manner set forth herein.
The Solicitation Agent for the Solicitation is
Bondholder Communications Group
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CAUTIONARY STATEMENT REGARDING INFORMATION OR REPRESENTATIONS
NOT CONTAINED IN THIS STATEMENT
No person has been authorized to give any information or make any representations other than those
contained or incorporated by reference in this Statement. If given or made, such information or representations must
not be relied upon as having been authorized by the Company, the Trustee, Bondholder Communications Group (the
"Solicitation Agent") or any other person. The statements made in this Statement are made as of the date of this
Statement and the delivery of this Statement shall not, under any circumstances, create any implication that the
information contained in this statement is correct after the date of this Statement.
The Solicitation is not being made to, and no Consents are being solicited from, Holders of Notes in any
jurisdiction in which it is unlawful to make such Solicitation or grant such Consents. However, the Company may, in
its sole discretion, take such actions as it may deem necessary to solicit Consents in any jurisdiction and may extend
the Solicitation to, and solicit Consents from, persons in any such jurisdiction.
The making of the Solicitation may be restricted by law in some jurisdictions. Persons into whose possession
this Statement comes must inform themselves about and observe these restrictions.
STATEMENT REGARDING INFORMATION CONTAINED IN THIS STATEMENT
The information provided in this Statement is based upon information provided solely by the Company. The
Company accepts sole responsibility for this Statement.
Neither the Solicitation Agent nor the Trustee makes any (and shall not be deemed to make any)
recommendation as to whether Consents to the Solicitation should be given. Recipients of this Statement should not
construe its contents as legal, business or tax advice. Each recipient should consult its own attorney, business advisor
and tax advisor as to legal, business, tax and related matters concerning the Solicitation.
UNDER NO CIRCUMSTANCES SHOULD ANY PERSON TENDER OR DELIVER NOTES IN
CONNECTION WITH THIS SOLICITATION AT ANY TIME.
Throughout this Statement unless the context requires otherwise, the words "the group", "we", "our" and
"ours" refer collectively to the Company and its consolidated subsidiaries and controlled partnerships. The defined
terms "Schefenacker AG" and the "Company" refer only to Schefenacker AG.
Each Holder is responsible for assessing the merits of the Solicitation. The Trustee has not made and the
Trustee will not make any assessment of the merits of the Solicitation or of the impact of the Solicitation on the
interests of the Holders either as a class or as individuals. The entry into the Third Supplemental Indenture as a result
of the Solicitation will not require the Trustee to, and the Trustee shall not, consider the interests of the Holders either
as a class or as individuals. The Trustee has, however, not been involved in the Solicitation and makes no
representation that all relevant information has been disclosed to Holders in this Statement. Accordingly, Holders
who are in any doubt as to the impact of the Solicitation should seek their own financial advice.
To deliver Consents held through either Euroclear Bank S.A./N.V., as operator of the Euroclear system
("Euroclear"), and Clearstream Banking, société anonyme ("Clearstream" and, together with Euroclear, each a
"Clearing System"), Holders should submit a valid Electronic Consent Instruction to the relevant Clearing System,
as set forth in "Procedures for Consenting."
Copies of this Statement, as amended or supplemented from time to time, will be provided without charge to
any Holder upon request. Requests for such documents should be directed to the Solicitation Agent at Bondholder
Communications Group at tel. no. +44 (0) 207 382 4580 (London) or +1 212 809 2663 (New York), or by email to
[email protected]. The Solicitation Agent will also make all documents, notices and press releases relating to
the Solicitation available on its website at www.bondcom.com/schefenacker.
AVAILABLE INFORMATION
As long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such exchange require,
copies of reports and other information concerning the Company may be obtained, free of charge, during normal business
hours on any business day at the office of our listing agent in Luxembourg, The Bank of New York (Luxembourg) S.A.,
Aerogolf Center, 1A, Hoehenhof, L-1736 Senningerberg, Luxembourg (the "Luxembourg Listing Agent").
3
TABLE OF CONTENTS
Contents
Section
Page
BACKGROUND AND PURPOSE OF THE SOLICITATION ................................................... 5
THE THIRD SUPPLEMENTAL INDENTURE .......................................................................... 6
THE SOLICITATION .................................................................................................................. 8
ANNEX 1.................................................................................................................................... 13
EXHIBIT A................................................................................................................................. 17
EXHIBIT B ................................................................................................................................. 19
EXHIBIT C ................................................................................................................................. 21
EXHIBIT D................................................................................................................................. 23
4
BACKGROUND AND PURPOSE OF THE SOLICITATION
The Company has been discussing with its creditors a possible restructuring of its financial indebtedness.
An informal association of Holders (the “Ad Hoc Committee”) has appointed financial and legal advisers to advise
the Ad Hoc Committee during the restructuring process.
The Company believes that it is in the best interests of its Holders to agree to a consensual restructuring. If
the Company is not able to effect a consensual restructuring, then it is likely that the Company's secured creditors will
enforce their security and the Company will need to commence bankruptcy or insolvency proceedings. The Notes are
subordinated to the secured debt of the Company. One effect of this is that any recoveries in an insolvency must be
turned over by the Trustee to the agents of the secured creditors for distribution to the secured creditors. It is the view
of the Company that the Holders are likely to receive nothing at all in respect of their Notes in the event of a security
enforcement and bankruptcy/insolvency of the Company.
In a consensual restructuring the Holders and their advisers have the opportunity to negotiate for a stake in
the restructured group. Commercial negotiations on this issue are expected to commence very soon and in this
respect proposals have been received from the shareholder and the Ad Hoc Committee. The Company believes that a
successful consensual restructuring provides the only prospect for the Holders of receiving any value in respect of
their Notes.
The Company is both the issuer of the Notes and the primary obligor under the group's senior secured
indebtedness, including its senior credit facilities and second lien credit facilities (the "Senior Debt"). Many of the
main operating subsidiaries of the group have given guarantees of both the Senior Debt and the Notes. However, the
rights of the Holders under those guarantees are expressly contractually subordinated to the rights of the holders of
the Senior Debt. The Company believes that it is critical in order to maximize value in the restructuring that the
operational activities of the group be unaffected by the restructuring of the indebtedness of the Company and this
means, in particular, that the guarantees given by those operating companies need to be dealt with without disrupting
their operating activities and without forcing those operating companies to commence their own insolvency
proceedings.
The Company believes that it will be possible to implement a consensual restructuring in such a way that the
operational activities of the group are unaffected through an English company voluntary arrangement process. An
English company voluntary arrangement proceeding is essentially an out of court process under which unsecured
creditors can agree with the Company to restructure the indebtedness of the Company and to deal with consequential
matters such as guarantee claims. A company voluntary arrangement can only be proposed by an English company.
There is no comparable procedure which could be used for this purpose under German law. However, German law
provides for a process under which the assets and liabilities of a German company, such as the Company, can be
transferred by way of succession to another company, including a newly incorporated English company.
In that regard, it is considering a "migration" of all of the Company's properties, assets and obligations from
the Company to Schefenacker PLC, a newly incorporated English company, in order to assist a consensual
restructuring. The migration would result in the succession of the Successor Issuer to all of the Company's
properties, assets and obligations pursuant to German universal succession laws.
The Succession would be expressly permitted by the Indenture provided, among other things, that the
conditions set forth in Section 5.01(b) of the Indenture have been satisfied. Section 5.01(b)(iii) of the Indenture
requires that immediately after giving effect to the relevant transaction, or series of related transactions, the Issuer or
the surviving entity (which, in this case, is the Successor Issuer) could incur at least €1.00 of additional Debt (other
than Permitted Debt) in compliance with the fixed charge coverage ratio provision of the "Limitation on Debt"
covenant contained in Section 4.06 of the Indenture. The Successor Issuer would not satisfy this requirement at the
time of, and after giving effect to, the Succession and, accordingly, an amendment to the Indenture may be required
to permit the Succession in accordance with the provisions of the Indenture.
However, in order to preserve the prospect of implementing a consensual restructuring through a company
voluntary arrangement in order not to risk the integrity of the operating activities of the group, the Company may
need to act quickly and it therefore needs to retain the flexibility to implement Succession if it concludes that
Succession is in the best interests of the Holders and needs to be carried out immediately, even though the Requisite
Consents may have not been obtained, in order to preserve value for Holders.
If the Succession occurs prior to the Requisite Consents being obtained, the Successor Issuer and the
Guarantors at the time of the Succession will not have entered into a supplemental indenture pursuant to which the
Successor Issuer expressly assumes all of the Company's obligations under the Notes and the Indenture and the
Guarantors confirm their respective guarantees of the Successor Issuer's obligations under the Notes and the
Indenture. As an interim measure therefore, if the Requisite Consents are not received prior to the Succession, the
Successor Issuer and the Guarantors will execute the Instrument of Assumption substantially in the form set out in
Exhibit B pursuant to which the Successor Issuer will expressly assume all of the Company's obligations under the
Notes and the Indenture in accordance with the terms thereof and the Guarantors will confirm that their respective
guarantees apply to the Successor Issuer's obligations under the Indenture, the Notes and the Instrument of
Assumption in accordance with the terms of such guarantees as provided in the Indenture. The Instrument of
Assumption shall cease to have any further force and effect upon the entry into by the Successor Issuer, the
Guarantors and the Trustee of, and shall be automatically superseded by, a supplemental indenture by which the
5
Successor Issuer expressly assumes all of the Company's obligations under the Notes and the Indenture and the
Guarantors confirm their respective guarantees following the receipt of the Required Consents.
If the Succession occurs prior to the Requisite Consents being obtained, a Consent will be a waiver of any
event of default arising out of the Succession and an instruction to the Trustee to enter into the supplemental
indenture substantially in the form set out in Exhibit C.
If the transfer of the obligations under the Notes to Schefenacker PLC together with all the other assets and
obligations formerly held by Schefenacker AG does not occur, it is likely that Schefenacker AG will, in due course,
be required by law to commence bankruptcy proceedings in the German courts. If bankruptcy proceedings are
commenced, the secured creditors would be expected to enforce their security and the Holders would be expected to
receive no value at all in respect of their Notes. Holders are therefore requested to respond to this consent
solicitation as quickly as possible.
Holders are urged to take the following actions as quickly as possible, in order to be able to participate in the
Company's restructuring process:
(i)
Submit an Electronic Consent Instruction (as defined below) or request such Holder’s broker,
dealer, bank, trust company or other nominee to effect the submission of an Electronic Consent Instruction to
authorize the delivery of Consents and the blocking of the relevant accounts in Euroclear or Clearstream for such
Holder;
(ii)
contact Close Brothers Corporate Finance Limited (financial advisers to the Ad Hoc Committee),
whose details are given below; and
(iii)
contact Sandra Fischer of Bondholder Communications Group (the Solicitation Agent) on +44 207
382 4580 (London) or +1 212 809 2663 (New York) or at [email protected] with any queries regarding the
Solicitation procedures or documents.
If you have any questions about the Ad Hoc Committee or would like any further information about the Ad
Hoc Committee, please contact Matthew Prest (Close Brothers Corporate Finance Limited; tel: +44 (0) 207 655 3100;
e-mail: [email protected]), Francois Vidal (Close Brothers Corporate Finance Limited; tel: +44 (0) 207 655
3187; e-mail: [email protected]) or Gerd Bieding (Close Brothers GmbH; tel: +49 (0) 69 972004 64; e-mail:
[email protected]) as soon as possible.
THE THIRD SUPPLEMENTAL INDENTURE
Set forth below is a summary of the Solicitation for which Consents are being sought pursuant to this
Statement. The Third Supplemental Indenture in substantially the form we propose to execute it is set forth in Annex
A, which forms a part of this Statement. Each capitalized term appearing below that is not defined herein has the
meaning assigned to such term in the Indenture.
General
The Company is seeking the Solicitation in order to amend the requirement of Section 5.01(b)(iii) of the
Indenture in order to expressly permit the Succession notwithstanding that, immediately after giving effect to the
Succession on a pro forma basis, the Successor Issuer would not be able to incur at least €1.00 of additional Debt
(other than Permitted Debt) under the provisions of Section 4.06 of the Indenture.
By consenting to the Solicitation, Holders:
(i) authorize and direct the Trustee to enter into the Third Supplemental Indenture substantially in
the form set out in Exhibit B and in the alternative
(ii) expressly waive any event of default and its consequences thereunder arising out of the Succession
if the Third Supplemental Indenture is not executed before the Succession and authorize and direct the
Trustee to enter into the supplemental indenture substantially in the form set out in Exhibit C.
In accordance with normal and accepted market practice, the Trustee expresses no opinion on the merits of
the Solicitation.
Effect of the Solicitation
If the Solicitation becomes effective prior to the Succession, the Third Supplemental Indenture will be
binding on all Holders and their transferees, whether or not such Holders have consented to the Solicitation.
Following the entry into the Third Supplemental Indenture, the completion of the Succession would be permitted
under the Indenture. If and when the Company proceeds with the Succession, the Successor Issuer, the Guarantors
and the Trustee will execute the Fourth Supplemental Indenture, by which the Successor Issuer will expressly assume
all of the Company's obligations under the Notes and the Indenture and the Guarantors will confirm their respective
guarantees. If and when executed, the Fourth Supplemental Indenture will be binding on all Holders and their
transferees, whether or not such Holders have consented to the Solicitation. The Fourth Supplemental Indenture in
substantially the form we propose to execute it is set forth in Exhibit B.
6
If the Solicitation becomes effective after the Succession, thereby waiving any event of default and the
consequences thereof arising out of the Succession and directing the Trustee to enter into a supplemental indenture,
the Successor Issuer, the Guarantors and the Trustee will execute a supplemental indenture, substantially in the form
of Exhibit C, by which the Successor Issuer will expressly assume all of the Company's obligations under the Notes
and the Indenture and the Guarantors will confirm their respective guarantees. If and when executed, the
supplemental indenture and the waiver will be binding on all Holders and their transferees, whether or not such
Holders have consented to the Solicitation.
Holders who consent to the Solicitation agree not to sell, transfer or assign any of their Notes, any interest therein
or any claim such Holders may have against the Company based upon their ownership of Notes to any person unless such
person prior to any such sale, transfer or assignment agrees in writing to be bound by the Solicitation as if such person had
consented to the Solicitation unless and until (i) the Expiration Time, (ii) the Company announces that the Solicitation has
been terminated without completion or (iii) the Holder revokes its Consent prior to the Expiration Time.
7
THE SOLICITATION
General
Pursuant to Section 9.02 of the Indenture, the amendment of Section 5.01(b)(iii) of the Indenture requires the
receipt of the Requisite Consents, consisting of the valid and unrevoked Consents of Holders of a majority in
aggregate principal amount of the Notes outstanding, at or prior to the Expiration Time. As of the date of this
Statement, the outstanding aggregate principal amount of the Notes is €200,000,000. There can be no assurance that
the Solicitation will become effective. If the Solicitation becomes effective, the Third Supplemental Indenture
will be binding on all Holders and their transferees, whether or not such Holders have consented to the
Solicitation. If and when executed, the Fourth Supplemental Indenture will be binding on all Holders and
their transferees, whether or not such Holders have consented to the Solicitation.
Should the Succession occur without having received the Requisite Consents, pursuant to Sections 6.04 and
9.02(a) of the Indenture, the waiver of any breach of the Indenture and any resulting event of default under Article
Five arising out of the Succession requires the receipt of the Requisite Consents, consisting of the valid and
unrevoked Consents of Holders of a majority in aggregate principal amount of the Notes outstanding, at or prior to
the Expiration Time. As of the date of this Statement, the outstanding aggregate principal amount of the Notes is
€200,000,000. There can be no assurance that the Solicitation will become effective. If the Solicitation becomes
effective, the waiver of any event of default relating to the Succession and a supplemental indenture will be
binding on all Holders and their transferees, whether or not such Holders have consented to the Solicitation.
If and when the Requisite Consents have been delivered and not revoked, the Company shall make the
Effectiveness Announcement. As soon as practicable after the making of the Effectiveness Announcement, a copy of
the Effectiveness Announcement will be made available on the Company's website (www.schefenacker.com). The
Company also will publish a notice upon completion of the execution of the Third Supplemental Indenture. The
delivery of a Consent will not affect a beneficial owner's right to sell or transfer the Notes. However, Holders who
consent to the Solicitation agree not to sell, transfer or assign any of their Notes, any interest therein or any claim such
Holder may have against the Company based upon their ownership of Notes to any person, unless such person prior to any
such sale, transfer or assignment agrees in writing to be bound by the Solicitation as if such person had consented to the
Solicitation unless and until (i) the Expiration Time, (ii) the Company announces that the Solicitation has been terminated
without completion or (iii) the Holder has revoked its Consent prior to the Expiration Time. Failure to deliver a Consent
will have the same effect as if a Holder had voted "No" to the Solicitation.
Beneficial owners of the Notes who wish to provide a Consent and whose Notes are held in the name of a
broker, dealer, commercial bank, trust company or other nominee institution must contact such nominee promptly and
instruct such nominee, as the Holder of such Notes, to consent in accordance with the customary procedures of
Euroclear and Clearstream, on behalf of the beneficial owner prior to the Expiration Time.
Failure to Obtain Requisite Consents
In the event the Requisite Consents are not obtained with respect to the Notes, any other condition set forth
in this Statement is not satisfied or waived, or the solicitation is terminated, the Company will not execute the Third
Supplemental Indenture.
Expiration Time; Extensions; Amendment
The term "Expiration Time" means the earlier of (i) 5:00 p.m., London Time on December 8, 2006 and (ii)
the time at which the Effectiveness Announcement is made, unless the Company, in its sole discretion, extends the
period during which the Solicitation is open, in which case the Expiration Time shall be the latest date and time for
which an extension is effective. The Company may extend the Solicitation on a daily basis or for a specified period of
time. In order to extend the Solicitation period, the Company will notify the Solicitation Agent of any extension by
oral or written notice and will make a public announcement thereof, each prior to 2:00 p.m., London time, on the next
business day after the previously scheduled Expiration Time. The Company currently intends to notify Holders of any
such extension solely by issuing a press release, a copy of which will immediately be made available on the
Company's website (www.schefenacker.com), but may elect to utilize other means reasonably calculated to inform
Holders of such extension. Failure of any Holder to be so notified will not affect the extension of the Solicitation.
The Company expressly reserves the right, in its sole discretion, at any time to (i) terminate the Solicitation,
(ii) waive any of the conditions to the Solicitation, (iii) extend the Expiration Time, or (iv) amend the terms of the
Solicitation in any manner favorable to the Holders.
If the Company elects to waive any of the conditions to the Solicitation, extend the Solicitation period or
amend the terms of the Solicitation in a manner favorable to the Holders, all Consents received will remain valid (and
subject to revocation as provided in this Statement) until the date and time to which the Expiration Time has been
extended.
Without limiting the manner in which the Company may choose to make a public announcement of any
extension, amendment or termination of the Solicitation, the Company shall have no obligation to publish, advertise,
8
or otherwise communicate such public announcement, other than by making a timely press release and making that
press release available on its website, as mentioned above.
Procedures for Consenting
Consents delivered in accordance with the procedures described below will constitute the delivery of a
written Consent by such Holder with respect to such Notes.
Delivery of Consents. The delivery of Consents pursuant to the procedures set forth below will constitute a
binding agreement between such Holder and the Company in accordance with the terms and subject to the conditions
set forth in this Statement.
Electronic Consent Instructions. To deliver Consents by Electronic Consent Instruction, a Holder should
either (i) contact Euroclear or Clearstream for participation procedures and deadlines regarding the submission of a
tested telex, authenticated SWIFT message, a Euclid server or Creation online instruction (each an “Electronic
Consent Instruction”) to authorize the delivery of Consents and the blocking of the relevant accounts in Euroclear or
Clearstream, as the case may be; or (ii) request such Holder’s broker, dealer, bank, trust company or other nominee to
effect the submission of an Electronic Consent Instruction to authorize the delivery of Consents and the blocking of
the relevant accounts in Euroclear or Clearstream for such Holder. Holders whose Notes are held on their behalf
by a broker, dealer, bank, trust company or other nominee must contact such entity if they desire to consent to
the Solicitation.
Notwithstanding that the Consents are delivered by each Holder by means of an Electronic Consent
Instruction, each Holder thereby agrees that such Electronic Consent Instruction constitutes a written consent to the
Solicitation.
For the avoidance of doubt, each Holder submitting an Electronic Consent Instruction must ensure that
Euroclear or Clearstream, as the case may be, is authorized to block the account(s) in which the Notes for which
Consents are delivered are held so that no transfers may be effected in relation to such Notes at any time from and
including the date on which the Holder submits its Electronic Consent Instruction, until the Expiration Time or
termination or withdrawal of the Solicitation or, in the case of Notes in respect of which the Consent has been
revoked, the date on which Consent is validly revoked, all in accordance with the normal procedures of such Clearing
System and after taking into account the deadlines imposed by such Clearing Systems.
The receipt of such Electronic Consent Instruction by Euroclear or Clearstream may be acknowledged in
accordance with the standard practices of Euroclear or Clearstream. For the avoidance of doubt any such
acknowledgement does not constitute an acceptance of the Consent by or on behalf of the Company.
Procedures for delivering Consents. A Holder may consent by submitting a valid Electronic Consent
Instruction to the relevant Clearing System in accordance with the requirements of the relevant Clearing System. The
Holder must clearly state in the Electronic Consent Instruction:
•
the aggregate principal amount of Notes with respect to which the Holder wishes to deliver a
Consent;
•
the name of the Holder, the securities account number for the relevant Clearing System in which the
Notes are held, the name of the participant and its corresponding Euroclear or Clearstream number;
•
that the Notes are blocked from transfer in the relevant Clearing System; and
•
that the Holder authorizes the relevant Clearing System to disclose the details of this instruction to
the Solicitation Agent.
The Consent by a Holder of Notes will, on acceptance of the Consent by the Company and verification to the
Holders thereof, constitute a binding agreement between such Holder and the Company in accordance with the terms,
and subject to the conditions, set forth in this Statement and in the Electronic Consent Instruction, as the case may be.
Such Consent will be binding on the consenting Holder upon receipt by the relevant Clearing System of a valid
Electronic Consent Instruction in respect of all matters. A Consent by a Holder may be revoked prior to the
Expiration Time by submitting an electronic revocation instruction to the relevant Clearing System in accordance
with its standard procedures.
Euroclear and Clearstream intend to collect from their direct participants: (1) instructions to (a) consent the
Notes held by them on behalf of their participants and (b) credit their account on or about the Expiration Time in
respect to all consented securities; and (2) irrevocable authorization to disclose the name of the direct participants and
information about the foregoing instructions to the Solicitation Agent.
No Letter of Transmittal or Consent. No letter or transmittal or consent need be executed in relation to this
Solicitation. The submission of an Electronic Consent Instruction in the name provided in this Statement shall
constitute written consent to the Solicitation.
9
Representations, Warranties and Undertakings. By submitting a valid Electronic Consent Instruction to the
relevant Clearing System, the Holder is deemed to represent, warrant and undertake to the Company, the Solicitation
Agent and the Trustee that:
(a)
the Holder has received and reviewed this Statement;
(b)
the Notes are, at the time of acceptance, and will continue to be, until the Expiration Time or the
termination or withdrawal of the Solicitation, or, in the case of Notes in respect of which the
Consent has been revoked, the date on which such Consent is validly revoked, held by it at the
relevant Clearing System;
(c)
the Notes have been blocked (and will remain blocked until the Expiration Time or termination or
withdrawal of the Solicitation or, in the case of Notes in respect of which the Consent has been
revoked, the date on which Consent is validly revoked) in the securities account to which such
Notes are credited in the relevant Clearing System with effect from, and including, the date on
which either the Electronic Consent Instruction was received by the relevant Clearing System
until the Expiration Time or termination or withdrawal of the Solicitation or, in the case of Notes
in respect of which the Consent has been revoked, the date on which such Consent is validly
revoked, all in accordance with the normal procedures of such Clearing System and after taking
into account the deadlines imposed by such Clearing System;
(d)
the consenting Holder acknowledges that it consents to the Solicitation as described in this
Statement and authorizes, directs and requests the execution and delivery of the Third
Supplemental Indenture by the Trustee. The consenting Holder acknowledges that the submission
of an Electronic Consent Instruction to this effect constitutes the consenting Holder’s written
consent to the Solicitation; and
(e)
the consenting Holder acknowledges that all authority conferred or agreed to be conferred
pursuant to these representations, warranties and undertakings and every obligation of the
consenting Holder and the Consents given by the consenting Holder shall be binding upon the
successors, assigns, heirs, executors, administrators, trustees in bankruptcy and legal
representatives of the consenting Holder and shall not be affected by, and shall survive, the death
or incapacity of the consenting Holder.
If the relevant Holder is unable to give the representations and warranties described above, such Holder
should contact the Solicitation Agent.
All Consents will be made on the basis of the terms set out in this Statement and, once made in the manner
described above, will be binding on the relevant Holder and only revocable in accordance with the terms of this
Consent Solicitation. Consents may only be made by submission of a valid Electronic Consent Instruction to the
relevant Clearing System no later than the Expiration Time.
Upon the Expiration Time or if the Solicitation is terminated or withdrawn by the Company, upon notice by
the Company to the Clearing Systems, the Notes for which Consents have been given will be unblocked in the
relevant Clearing System. The Company will provide such notice as soon as reasonably practicable following the
Expiration Time or the termination or withdrawal of the Solicitation.
All questions as to validity, form and eligibility (including time of receipt) of any Electronic Consent
Instruction will be determined solely by the Company. Such determination as to whether or when an Electronic
Consent Instruction is received, whether it is duly completed and signed or whether a Consent is validly revoked shall
be final and binding.
Holders should ensure that the relevant Clearing System in which Notes are held has received instructions
(with which they have complied) to block such Notes in the securities account to which they are credited with effect
from, and including, the day on which the Electronic Consent Instruction is submitted so that no transfers may be
effected in relation to such Notes at any time after such date until the earlier of the Expiration Time or termination or
withdrawal of the Solicitation or the date on which the Holder's consent has been revoked in accordance with the
terms of this Consent Solicitation. Notes should be blocked in accordance with the procedures of the relevant
Clearing System and the deadlines required by the relevant Clearing System. The Company and the Solicitation
Agent shall be entitled to accept submission of an Electronic Consent Instruction as deemed confirmation that such
Notes have been so blocked.
Beneficial owners of Notes who are not direct participants in Euroclear or Clearstream must contact
their broker, dealer, bank, custodian, trust company or other nominee to arrange for their direct participant
in Euroclear or Clearstream, as the case may be, through which they hold Notes to submit a valid Electronic
Consent Instruction to the relevant Clearing System prior to the Expiration Time. The beneficial owners of
Notes that are held in the name of a broker, dealer, bank, custodian, trust company or other nominee or
custodian should contact such entity sufficiently in advance of the Expiration Time if they wish to Consent and
procure that the Notes are blocked in accordance with the normal procedures of the relevant Clearing System
and the deadlines imposed by such Clearing System.
10
Consent of Notes in Physical Form. The Trustee has informed the Company that all Holders hold the Notes
through Clearing System accounts and there are no Notes in physical form. If you believe that you are holding a
Note in physical form, please contact the Solicitation Agent for the appropriate procedures with regard to consenting
with respect to such Notes.
No Guaranteed Delivery. There are no guaranteed delivery procedures provided by the Company in
connection with this Solicitation. Beneficial owners of Notes that are held in the name of a custodian must contact
such entity sufficiently in advance of the Expiration Time if they wish to Consent.
Direct participants in Euroclear or Clearstream delivering Consents must give authority to Euroclear or
Clearstream to disclose their identity to the Solicitation Agent.
Consents should not be delivered to the Trustee or the Company.
UNDER NO CIRCUMSTANCES SHOULD ANY PERSON TENDER OR DELIVER NOTES IN
CONNECTION WITH THIS SOLICITATION AT ANY TIME.
The Company will resolve all questions as to the validity, form, eligibility (including time of receipt) and
acceptance and revocations of Consents, whose determinations will be binding. The Company reserves the right to
reject any or all Consents and revocations not validly given or any Consents the Company's acceptance of which
could, in the opinion of the Company's counsel, be unlawful. The Company also reserves the right to waive any
defects or irregularities in connection with deliveries or to require a cure of such irregularities within such time as the
Company determines. None of the Company, the Solicitation Agent nor the Trustee or any other person shall have
any duty to give notification of any such waiver, defects or irregularities, nor shall any of them incur any liability for
failure to give such notification. Delivery of Consents or notices of revocations will be deemed not to have been made
until such defects or irregularities have been cured or waived.
Revocation of Consents
A Holder may revoke its Consent at any time prior to the Expiration Time.
All Consents received prior to the Expiration Time will be counted, notwithstanding any transfer of the
Notes to which such Consents relate, unless the Solicitation Agent receives from a Holder (or a subsequent holder
which has received a proxy from the relevant Holder) a notice of revocation delivered in accordance with the
customary procedures of Euroclear and Clearstream. A Consent to the Solicitation by a Holder of the Notes will, with
respect to the proposed amendments, bind the Holder and every subsequent holder of such Notes or portion of such
Notes, even if notation of the Consent is not made on such Notes.
To be effective, a notice of revocation must be in a format customarily used by Euroclear and Clearstream.
A revocation of a Consent will be effective only as to the Notes listed on the revocation and only if such
revocation complies with the provisions of this Statement. Only a Holder is entitled to revoke a Consent previously
given. A beneficial owner of the Notes must arrange with the Holder to deliver on its behalf a revocation of any
Consent already given with respect to such Notes.
A purported notice of revocation that the Solicitation Agent does not receive in a timely fashion and that the
Company does not accept as a valid revocation will not be effective to revoke a Consent previously given.
A Holder who has delivered a revocation may, after such revocation, give Consent at any time prior to the
Expiration Time.
The Company reserves the right to contest the validity of any revocations.
Fees and Expenses
The Company will bear the costs of the Solicitation. The Company will reimburse the Trustee for expenses
that the Trustee incurs in connection with the execution of the supplemental indentures.
The Company will not pay any commission or other remuneration to any broker, dealer, salesman or other
person (other than the Solicitation Agent) for soliciting Consents pursuant to this Statement. Brokers, dealers,
commercial banks and trust companies will be reimbursed for reasonable out-of-pocket expenses that they incur in
forwarding the solicitation materials to their customers.
The Solicitation Agent
The Company has retained Bondholder Communications Group as Solicitation Agent to collect and tabulate
Consents. The Solicitation Agent will receive a customary fee for such services and reimbursement of its reasonable
out-of-pocket expenses related thereto. The Company will also indemnify it against certain liabilities.
11
The Company has not authorized the Solicitation Agent to give any information or make any representations
in connection with this solicitation other than those contained in this Statement and, if given or made, such
information or representations must not be relied upon as having been authorized.
12
ANNEX 1
VORSCHLAG VOM 24 NOVEMBER 2006
SCHEFENACKER AG
Vorschlag einem Nachtrag zur Indenture zuzustimmen
_____________________________________________
9 1/2% Senior Subordinated Notes fällig 2014
(ISIN: XS0185387841; Common Code: 018538784
ISIN: XS0185385712; Common Code: 018538571)
ausstehender Nennwert: € 200.000.000
___________________________________________
Schefenacker AG, eine Aktiengesellschaft deutschen Rechts (die "GESELLSCHAFT"), unterbreitet den NotesGläubigern (die "NOTES-GLÄUBIGER") ihrer ausstehenden und im Jahr 2014 fälligen 9 ½ % SENIOR
SUBORDINATED NOTES mit einem Gesamtnennwert von € 200.000.000 (die "NOTES") den Vorschlag (der
"VORSCHLAG" oder das "VORSCHLAGSVERFAHREN"), der Unterzeichnung eines dritten Nachtrags (der "DRITTE
NACHTRAG") zur Indenture (Begebungsvertrag nach New Yorker Recht) der NOTES vom 11. Februar 2004 (die
"INDENTURE") zwischen der GESELLSCHAFT und den Garantiegebern der INDENTURE sowie der Bank of New York
als Treuhänder (der "TREUHÄNDER") zuzustimmen (die "ZUSTIMMUNGEN"). Hilfsweise schlägt die
GESELLSCHAFT eine Verzichtserklärung und den Abschluss eines Nachtrags zu der INDENTURE wie nachstehend
beschrieben sowie die Zustimmung dazu vor. Die GESELLSCHAFT beantragt die ZUSTIMMUNGEN hierzu im
Rahmen eines einzigen VORSCHLAGS.
Die GESELLSCHAFT führt mit ihren Gläubigern Gespräche über eine mögliche Restrukturierung ihrer
Finanzverbindlichkeiten. In diesem Zusammenhang erwägt sie eine "Migration" ihres gesamten Eigentums sowie aller
Vermögenswerte und Verbindlichkeiten der GESELLSCHAFT auf Schefenacker PLC, eine neu errichtete Gesellschaft
englischen Rechts (die "NACHFOLGE-EMITTENTIN"), um eine einvernehmliche Restrukturierung ihrer
Fnanzverbindlichkeiten zu ermöglichen. Die "Migration" hätte die Rechtsnachfolge der NACHFOLGE-EMITTENTIN in
Bezug auf das gesamte Eigentum und sämtliche Vermögenswerte und Verbindlichkeiten der GESELLSCHAFT (die
"RECHTSNACHFOLGE") zur Folge und soll im Wege der Gesamtrechtsnachfolge nach deutschem Recht erfolgen.
Vorbehaltlich der nachstehend beschriebenen Wirksamkeitsbedingungen ersucht die GESELLSCHAFT die
NOTES-GLÄUBIGER um ihre ZUSTIMMUNG gemäß dem VORSCHLAG, Ziffer 5.01(b)(iii) der INDENTURE zu
ändern, um die RECHTSNACHFOLGE nach Artikel 5 der INDENTURE ausdrücklich zuzulassen, auch wenn die
NACHFOLGE-EMITTENTIN nicht in der Lage ist, unmittelbar nach dem formellen Inkrafttreten der Rechtsnachfolge
unter Einhaltung des sogenannten "fixed charge coverage ratio" gemäß der Verpflichtungserklärung zur "Beschränkung von
Verbindlichkeiten" ("Limitation on Debt") zusätzliche VERBINDLICHKEITEN (Debt) (mit Ausnahme von ZULÄSSIGEN
VERBINDLICHKEITEN (Permitted Debt)) in Höhe von mindestens € 1,00 einzugehen. Nach einer solchen Änderung
werden die NACHFOLGE-EMITTENTIN, sämtliche GARANTIEGEBER der INDENTURE (die "GARANTIEGEBER")
und der TREUHÄNDER einen weiteren Nachtrag zur INDENTURE (der "VIERTE NACHTRAG") unterzeichnen, in dem
die NACHFOLGE-EMITTENTIN ausdrücklich sämtliche Verpflichtungen der GESELLSCHAFT aus den NOTES und der
INDENTURE übernimmt und die GARANTIEGEBER ihre jeweiligen Garantien bestätigen.
Der VORSCHLAG erfolgt zu den in dieser Vorschlagserklärung (die "ERKLÄRUNG") enthaltenen
Bestimmungen und Bedingungen. Die Wirksamkeit des VORSCHLAGS und die Unterzeichnung des DRITTEN
NACHTRAGS stehen unter der Bedingung, dass die NOTES-GLÄUBIGER, auf die insgesamt mehr als 50 % des
Gesamtnennwertes der NOTES entfallen, ihre ZUSTIMMUNG erteilen (die "ERFORDERLICHEN
ZUSTIMMUNGEN"). Wenn die ERFORDERLICHEN ZUSTIMMUNGEN erteilt sind und nicht widerrufen wurden, wird
die GESELLSCHAFT in einer Pressemitteilung das Vorliegen der ERFORDERLICHEN ZUSTIMMUNGEN und die
Unterzeichnung des DRITTEN NACHTRAGS öffentlich bekanntgeben (die "WIRKSAMKEITSMELDUNG") und diese
Mitteilung auch baldmöglichst auf ihrer Website (www.schefenacker.com) veröffentlichen. Die GESELLSCHAFT, die
GARANTIEGEBER und der TREUHÄNDER werden den DRITTEN NACHTRAG unmittelbar vor Bekanntgabe der
WIRKSAMKEITSMELDUNG abschließen. Zum Zeitpunkt der WIRKSAMKEITSMELDUNG läuft das
VORSCHLAGSVERFAHREN aus.
Der VORSCHLAG (Consent Solicitation Statement) sowie weitere damit im Zusammenhang stehende Dokumente
können auch von der Internetseite der mit dem VORSCHLAGSVERFAHREN beauftragten Stelle
www.bondcom.com/schefenacker heruntergeladen werden.
Um sich die Möglichkeit offenzuhalten, eine einvernehmliche Restrukturierung durchzuführen, ist es nach Ansicht
der GESELLSCHAFT erforderlich, sich die notwendige Flexibilität zur Umsetzung der Migration zu bewahren, falls sie zu
der Überzeugung gelangt, dass die Migration im besten Interesse der NOTES-GLÄUBIGER liegt und zur Werterhaltung der
NOTES unverzüglich durchzuführen ist, auch wenn die ERFORDERLICHEN ZUSTIMMUNGEN noch nicht erteilt sind.
Eine Migration vor Vorliegen der ERFORDERLICHEN ZUSTIMMUNGEN könnte einen Kündigungsgrund nach der
INDENTURE darstellen. Dadurch, dass die NOTES-GLÄUBIGER entweder vor oder nach dem Eintritt der
RECHTSNACHFOLGE ihre ZUSTIMMUNG erteilen und nicht widerrufen, stimmen die NOTES-GLÄUBIGER hilfsweise
einem Verzicht auf einen möglicherweise vor der Erteilung der ERFORDERLICHEN ZUSTIMMUNGEN und dem
Abschluss des Nachtrags zu der INDENTURE aufgrund der RECHTSNACHFOLGE eintretenden Kündigungsgrund zu.
Sollten die ERFORDERLICHEN ZUSTIMMUNGEN nicht vor der Durchführung der Migration erteilt sein,
werden die NACHFOLGE-EMITTENTIN und die GARANTIEGEBER bei oder vor der Migration eine Übernahme-,
Anerkennungs- und Bestätigungserklärung im Wesentlichen in der in "Exhibit D" vorgegebenen Form unterzeichnen (die
"ÜBERNAHMEERKLÄRUNG"), gemäß der die NACHFOLGE-EMITTENTIN ausdrücklich sämtliche Verpflichtungen
13
der GESELLSCHAFT aus den NOTES und der INDENTURE nach Durchführung der Migration übernimmt und die
GARANTIEGEBER ihre jeweiligen Garantien für die Verpflichtungen der NACHFOLGE-EMITTENTIN aus den NOTES
und der INDENTURE bestätigen. Wenn und sobald die ERFORDERLICHEN ZUSTIMMUNGEN nach der
RECHTSNACHFOLGE erteilt wurden, tritt der VORSCHLAG in Kraft, unterzeichnen die NACHFOLGE-EMITTENTIN,
die GARANTIEGEBER und der TREUHÄNDER einen Nachtrag zu der INDENTURE im Wesentlichen in der in
"Exhibit C" vorgegebenen Form, der die ÜBERNAHMEERKLÄRUNG ersetzt, und wird die Gesellschaft eine
WIRKSAMKEITSMELDUNG veröffentlichen.
Die NOTES-GLÄUBIGER können ihre ZUSTIMMUNGEN jederzeit vor oder zum VERFALLSTAG widerrufen.
Falls die ZUSTIMMUNG wirksam wird, ist der DRITTE NACHTRAG für jeden derzeitigen und künftigen NOTESGLÄUBIGER verbindlich, unabhängig davon, ob dieser seine ZUSTIMMUNG erteilt hat. Ein Widerruf muss entsprechend
den von Euroclear oder Clearstream etablierten Widerrufsverfahren erfolgen. Mit ihrer ZUSTIMMUNG zu dem
VORSCHLAG verpflichten sich die NOTES-GLÄUBIGER gleichzeitig, ihre NOTES, die Rechte daran sowie jegliche sich
aus den NOTES möglicherweise ergebenden Ansprüche gegenüber der GESELLSCHAFT nur an bzw. auf Personen zu
verkaufen, zu übertragen oder abzutreten, die vor dem Verkauf, der Übertragung oder der Abtretung schriftlich erklärt
haben, dass der VORSCHLAG für sie in gleicher Weise verbindlich ist, als hätten sie dem VORSCHLAG zugestimmt; diese
Erklärung gilt (i) bis zu dem VERFALLSTAG oder (ii) bis die GESELLSCHAFT bekanntgibt, dass sie den VORSCHLAG
zurückzieht, oder (iii) bis der NOTES-GLÄUBIGER seine ZUSTIMMUNG vor dem Auslauftermin des
Vorschlagsverfahrens widerruft.
Die GESELLSCHAFT empfiehlt den NOTES-GLÄUBIGERN dringend, dem VORSCHLAG zuzustimmen.
NOTES-GLÄUBIGER, deren NOTES von einem Makler, Händler, Bank, Treuhandgesellschaft oder anderen
Beauftragten verwahrt werden, müssen diesen kontaktieren, wenn Sie dem VORSCHLAG zustimmen wollen.
Die im Zusammenhang mit dem Vorschlagsverfahren beauftragte Stelle (Solicitation Agent) ist
Bondholder Communications Group
14
HINTERGRUND UND ZWECK DES VORSCHLAGS
Die GESELLSCHAFT führt mit ihren Gläubigern Gespräche über die mögliche Restrukturierung ihrer
Finanzverbindlichkeiten. Eine informelle Vereinigung von NOTES-GLÄUBIGERN (der "AD-HOC-AUSSCHUSS")
hat Finanz- und Rechtsberater mit der Beratung des AD-HOC-AUSSCHUSSES während der Restrukturierung der
Finanzverbindlichkeiten beauftragt.
Nach Ansicht der GESELLSCHAFT liegt eine einvernehmliche Restrukturierung der
Finanzverbindlichkeiten im besten Interesse ihrer NOTES-GLÄUBIGER. Sollte es der GESELLSCHAFT nicht
gelingen, eine einvernehmliche Restrukturierung ihrer Finanzverbindlichkeiten herbeizuführen, ist zu erwarten, dass
die besicherten Gläubiger der GESELLSCHAFT ihre Sicherheiten verwerten und die Einleitung eines
Insolvenzverfahrens erforderlich wird. Die NOTES gehen den besicherten Verbindlichkeiten der GESELLSCHAFT
im Range nach. Dies hat unter anderem zur Folge, dass die Erlöse aus der Insolvenzmasse von dem TREUHÄNDER
an die Vertreter der besicherten Gläubiger weiterzuleiten sind und an die besicherten Gläubiger ausgeschüttet werden.
Nach Ansicht der GESELLSCHAFT würden die NOTES-GLÄUBIGER im Falle einer Sicherheitenverwertung und
einer Insolvenz wahrscheinlich keinerlei Zahlungen hinsichtlich ihrer NOTES erhalten.
Eine einvernehmliche Restrukturierung der Finanzverbindlichkeiten der GESELLSCHAFT bietet den
NOTES-GLÄUBIGERN und ihren Beratern hingegen die Möglichkeit, über eine Beteiligung an der umstrukturierten
Unternehmensgruppe zu verhandeln. Die kaufmännischen Verhandlungen über diese Frage werden voraussichtlich in
Kürze beginnen, und es sind bereits diesbezügliche Vorschläge des Aktionärs der GESELLSCHAFT und des ADHOC-AUSSCHUSSES eingegangen. Nach Ansicht der GESELLSCHAFT besteht nur im Falle einer erfolgreichen
einvernehmlichen Restrukturierung der Finanzverbindlichkeiten für die NOTES-GLÄUBIGER die Möglichkeit,
Vermögenswerte in Bezug auf ihre NOTES zu erhalten.
Die GESELLSCHAFT ist sowohl Emittentin der NOTES als auch Hauptschuldnerin der vorrangig
besicherten Verbindlichkeiten der GESELLSCHAFT, insbesondere auch der vorrangig besicherten Kreditfazilitäten
und der durch nachrangige Pfandrechte besicherten Kreditfazilitäten (second lien credit facilities) (zusammen die
"VORRANGIGEN VERBINDLICHKEITEN"). Mehrere bedeutende operative Tochtergesellschaften der
Unternehmensgruppe haben Garantien sowohl hinsichtlich der VORRANGIGEN VERBINDLICHKEITEN als auch
hinsichtlich der NOTES übernommen. Dabei wurde jedoch ausdrücklich vertraglich vereinbart, dass die Rechte der
NOTES-GLÄUBIGER aus diesen Garantien den Rechten der Gläubiger der VORRANGIGEN
VERBINDLICHKEITEN im Range nachgehen. Nach Ansicht der GESELLSCHAFT ist es für den Werterhalt im
Rahmen der Restrukturierung der Finanzverbindlichkeiten entscheidend, dass die operativen Tätigkeiten der
Unternehmensgruppe von der Restrukturierung der Finanzverbindlichkeiten der GESELLSCHAFT unberührt
bleiben; dies bedeutet insbesondere, dass die von diesen operativen Gesellschaften übernommenen Garantien keine
nachteiligen Auswirkungen auf deren operative Tätigkeiten haben oder diese dadurch gezwungen werden, ihrerseits
die Einleitung von Insolvenzverfahren zu beantragen.
Nach Ansicht der GESELLSCHAFT besteht die Möglichkeit, eine einvernehmliche Restrukturierung der
Finanzverbindlichkeiten über ein freiwilliges Vergleichsverfahren (company voluntary arrangement) nach
englischem Recht durchzuführen, ohne dass dies Auswirkungen auf die operativen Tätigkeiten der
Unternehmensgruppe zur Folge hat. Ein company voluntary arrangement nach englischem Recht ist ein
außergerichtliches Verfahren, bei dem sich die unbesicherten Gläubiger mit der GESELLSCHAFT auf eine
Restrukturierung der Finanzverbindlichkeiten sowie auf die Erledigung der damit verbundenen Fragen, wie etwa
Ansprüche aus Garantien, einigen können. Company voluntary arrangements können nur von englischen
Gesellschaften eingeleitet werden. Das deutsche Recht sieht kein vergleichbares Verfahren vor. Nach deutschem
Recht besteht jedoch die Möglichkeit, die Vermögenswerte und Verbindlichkeiten einer Gesellschaft deutschen
Rechts – wie der GESELLSCHAFT – im Wege der Gesamtrechtsnachfolge auf eine andere Gesellschaft zu
übertragen, bei der es sich auch um eine neu errichtete englische Gesellschaft handeln kann.
Aus diesem Grund erwägt die GESELLSCHAFT eine "Migration" ihres gesamten Eigentums sowie all ihrer
Vermögenswerte und Verbindlichkeiten auf Schefenacker PLC, eine neu errichtete englische Gesellschaft, um so die
Bestrebungen zu einer einvernehmlichen Restrukturierung ihrer Finanzverbindlichkeiten zu unterstützen. Die
Migration hätte die Übernahme des gesamten Eigentums sowie sämtlicher Vermögenswerte und Verbindlichkeiten
der GESELLSCHAFT durch die NACHFOLGE-EMITTENTIN nach Maßgabe der deutschen gesetzlichen
Bestimmungen betreffend die Gesamtrechtsnachfolge zur Folge.
Die INDENTURE lässt eine solche RECHTSNACHFOLGE ausdrücklich zu, soweit - neben anderen
Voraussetzungen – die in Ziffer 5.01(b) der INDENTURE aufgeführten Bedingungen erfüllt sind. Gemäß
Ziffer 5.01(b)(iii) des BEGEBUNGSVERTAGS ist es erforderlich, dass die EMITTENTIN (Issuer) oder die
fortbestehende Gesellschaft (d. h. in diesem Fall die NACHFOLGE-EMITTENTIN) in der Lage ist, unmittelbar nach
Inkrafttreten der jeweiligen Transaktion oder der jeweiligen Folge von verbundenen Transaktionen unter Einhaltung
des sogenannten consolidated fixed charge coverage ratio gemäß der in Ziffer 4.06 der INDENTURE enthaltenen
"Beschränkung von Verbindlichkeiten" zusätzliche VERBINDLICHKEITEN (mit Ausnahme von ZULÄSSIGEN
VERBINDLICHKEITEN) in Höhe von mindestens € 1,00 einzugehen. Da die NACHFOLGE-EMITTENTIN diese
Voraussetzung zum Zeitpunkt der RECHTSNACHFOLGE sowie nach deren Inkrafttreten nicht erfüllen würde, kann
eine Änderung der INDENTURE erforderlich sein, damit die RECHTSNACHFOLGE gemäß den Bestimmungen der
INDENTURE zulässig ist.
15
Um sich die Möglichkeit offen zu halten, eine einvernehmliche Restrukturierung der
Finanzverbindlichkeiten im Wege eines freiwilligen Vergleichsverfahrens durchzuführen und somit das Risiko
negativer Auswirkungen auf die Geschäftstätigkeiten der Unternehmensgruppe zu vermeiden, muss die
GESELLSCHAFT unter Umständen schnell handeln und bedarf daher der nötigen Flexibilität, um die
RECHTSNACHFOLGE umzusetzen, wenn sie zu dem Schluss gelangt, dass die RECHTSNACHFOLGE im
Interesse der NOTES-GLÄUBIGER ist und zur Werterhaltung ihrer NOTES umgehend durchgeführt werden muss,
auch wenn die ERFORDERLICHEN ZUSTIMMUNGEN unter Umständen noch nicht erteilt wurden.
Tritt die RECHTSNACHFOLGE ein, bevor die ERFORDERLICHEN ZUSTIMMUNGEN erteilt wurden,
so werden die NACHFOLGE-EMITTENTIN und die GARANTIEGEBER zum Zeitpunkt der
RECHTSNACHFOLGE einen Nachtrag zu der INDENTURE noch nicht abgeschlossen haben, mit dem die
NACHFOLGE-EMITTENTIN ausdrücklich alle Verpflichtungen der GESELLSCHAFT aus den NOTES und der
INDENTURE übernimmt und die GARANTIEGEBER die jeweils von ihnen abgegebenen GARANTIEN für die
Verpflichtungen der NACHFOLGE-EMITTENTIN aus den NOTES und der INDENTURE bestätigen. Sofern die
ERFORDERLICHEN ZUSTIMMUNGEN nicht vor der RECHTSNACHFOLGE eingehen, werden die
NACHFOLGE-EMITTENTIN
und
die
GARANTIEGEBER
als
Übergangsmaßnahme
die
ÜBERNAHMEERKLÄRUNG unterzeichnen, mit der die NACHFOLGE-EMITTENTIN alle Verpflichtungen der
GESELLSCHAFT aus den NOTES und der INDENTURE gemäß deren jeweiligen Bestimmungen übernimmt und in
der die GARANTIEGEBER bestätigen, dass die von ihnen abgegebenen GARANTIEN gemäß deren Bestimmungen
und wie in der INDENTURE vorgesehen für die Verpflichtungen der NACHFOLGE-EMITTENTIN aus der
INDENTURE, den NOTES und der ÜBERNAHMEERKLÄRUNG gelten. Die ÜBERNAHMEERKLÄRUNG tritt
außer Kraft, sobald die NACHFOLGE-EMITTENTIN, die GARANTIEGEBER und der TREUHÄNDER einen
Nachtrag zu der INDENTURE abschließen, mit dem die NACHFOLGE-EMITTENTIN ausdrücklich alle
Verpflichtungen der GESELLSCHAFT aus den NOTES und der INDENTURE übernimmt und die
GARANTIEGEBER die jeweils von ihnen abgegebenen GARANTIEN bestätigen, und wird nach Eingang der
ERFORDERLICHEN ZUSTIMMUNGEN automatisch durch den Nachtrag zu der INDENTURE ersetzt.
Für den Fall, dass die RECHTSNACHFOLGE eintritt, bevor die ERFORDERLICHEN ZUSTIMMUNGEN
erteilt wurden, strebt die GESELLSCHAFT eine Verzichtserklärung hinsichtlich eines möglicherweise aufgrund der
RECHTSNACHFOLGE eintretenden Kündigungsgrundes sowie eine Anweisung an den TREUHÄNDER zum
Abschluss des Nachtrags zu der INDENTURE im Wesentlichen in der in "Exhibit C" vorgegebenen Form an, wobei
eine ZUSTIMMUNG eine solche Verzichtserklärung bzw. Anweisung darstellt.
Sollte die Migration nicht stattfinden, ist es wahrscheinlich, dass die Schefenacker AG zu gegebener Zeit
gesetzlich zur Einleitung eines Insolvenzverfahrens vor deutschen Gerichten gezwungen sein wird. In diesem Fall
würden die besicherten Gläubiger voraussichtlich ihre Sicherheiten verwerten, und die NOTES-GLÄUBIGER
würden voraussichtlich keinerlei Gegenwert für ihre NOTES erhalten. Die NOTES-GLÄUBIGER werden daher
um eine möglichst baldige Antwort auf diesen Vorschlag gebeten.
Sie werden darüber hinaus dringend gebeten, so schnell wie möglich folgende Maßnahmen zu ergreifen, um
an der Restrukturierung der Finanzverbindlichkeiten der GESELLSCHAFT mitwirken zu können:
(i)
eine Anweisung zur Abgabe einer elektronischen Zustimmungserklärung (Electronic Consent
Instruction) (näheres dazu im Abschnitt "The solicitation – Procedures for consenting") einzureichen oder ihren
Makler, Händler, ihre Bank, ihren Treuhänder oder sonstigen Beauftragten anzuweisen, eine Anweisung zur Abgabe
einer elektronischen Zustimmungserklärung einzureichen und die jeweiligen Euroclear- oder Clearstream-Konten in
ihrem Auftrag zu sperren;
(ii)
mit Close Brothers Corporate Finance Limited (Finanzberater des AD-HOC-AUSSCHUSSES),
deren Adressen nachstehend aufgeführt sind, Kontakt aufzunehmen; und
(iii)
Kontaktieren Sie Sandra Fischer von Bondholder Communications Group (der im Zusammenhang
mit dem VORSCHLAGSVERFAHREN beauftragten Stelle) unter Telefon +44 207 382 4580 (London) oder +1 212 809
2663 (New York) oder unter [email protected] mit Fragen zum VORSCHLAGSVERFAHREN, Dokumenten
oder sonstigen Fragen.
Sollten Sie Fragen zum AD-HOC-AUSSCHUSS haben oder weitere Informationen zum AD-HOCAUSSCHUSS wünschen, wenden Sie sich bitte so bald wie möglich an Matthew Prest (Close Brothers Corporate
Finance Limited; Tel.: +44 (0) 207 655 3100; E-Mail: [email protected]), Francois Vidal (Close Brothers
Corporate Finance Limited; Tel: +44 (0) 207 655 3187; E-Mail: [email protected]) oder Gerd Bieding (Close
Brothers GmbH; Tel: +49 (0) 69 972004 64; E-Mail: [email protected]).
16
EXHIBIT A
THIRD SUPPLEMENTAL INDENTURE TO THE INDENTURE GOVERNING THE €200,000,000 9 1/2%
SENIOR SUBORDINATED NOTES DUE 2014
THIRD SUPPLEMENTAL INDENTURE dated as of [z], 2006, among Schefenacker AG, a company organized
under the laws of Germany (the "Issuer"), Reitter & Schefenacker Sound GmbH, G.L.I. Global Light Industries
GmbH, Schefenacker Vision Systems Germany GmbH, Schefenacker Vision Systems Oberrot GmbH, ULO
Fahrzeugleuchten GmbH, A. Schefenacker GmbH & Co. Grundbesitz KG, SVS Spare parts GmbH, Schefenacker
Management UK Limited, Schefenacker International USA Inc., Reitter & Schefenacker USA Limited Partnership,
Schefenacker Vision Systems USA Inc., Schefenacker Lighting Systems Australia Pty Ltd, Schefenacker Vision
Systems Australia Pty Ltd, Schefenacker Vision Systems International Pty Ltd, Sapu BT and Schefenacker Vision
Systems España, SA (the "Guarantors"), and The Bank of New York, as Trustee (the "Trustee").
W I T N E S S E T H:
WHEREAS, the Issuer and the Trustee along with certain other guarantors named therein are parties to that certain
Indenture (the "Original Indenture"), dated as of February 11, 2004, as supplemented by a First Supplemental
Indenture dated December 21, 2004 and made between the Issuer, the Trustee and Schefenacker Vision Systems
España, SA (the "First Supplemental Indenture") and a Second Supplemental Indenture, dated December 21, 2004
and made between the Issuer, the Trustee and Schefenacker Vision Systems Germany GmbH (the "Second
Supplemental Indenture") (the Original Indenture, the First Supplemental Indenture and the Second Supplemental
Indenture together, the "Indenture");
WHEREAS, pursuant to Section 9.02(a) of the Indenture, the parties hereto are authorized to amend certain
provisions of the Indenture or the Notes with the written consent of the Holders of not less than a majority in
aggregate principal amount of the Notes then outstanding;
WHEREAS, as of the date hereof, a majority of Holders eligible to consent in accordance with the terms of the
Indenture have consented to the amendments set forth below and have not validly revoked such consents;
WHEREAS, pursuant to Section 9.02(a) of the Indenture, the parties hereto are authorized to execute and deliver this
Third Supplemental Indenture; and
WHEREAS, all things necessary to make this Third Supplemental Indenture a valid supplement to the Indenture
according to the terms of this Third Supplemental Indenture and the terms of the Indenture have been done;
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1. Certain Terms Defined in the Indenture. Unless otherwise defined herein or the context otherwise
requires, all capitalized terms used herein without definition shall have the meaning ascribed to them in the Indenture.
SECTION 2. Amendment of the Indenture. Pursuant to Section 9.02 of the Indenture, the Issuer, the Guarantors and
the Trustee hereby to agree to amend the Indenture by adding at the beginning of subclause (iii) of Section 5.01(b)
the underlined language:
(iii)
either (A) the Surviving Entity shall be Schefenacker PLC or (B)
immediately after giving effect to such transaction or series of transactions on a pro
forma basis (on the assumption that the transaction or series of transactions occurred
on the first day of the four-quarter fiscal period immediately prior to the
consummation of such transaction or series of transactions with the appropriate
adjustments with respect to the transaction or series of transactions being included in
such pro forma calculation), the Issuer (or the Surviving Entity if the Issuer is not the
continuing obligor under this Indenture) could incur at least €1.00 of additional Debt
(other than Permitted Debt) under the provisions of Section 4.06;
17
SECTION 3. Counterparts. This Third Supplemental Indenture may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.
SECTION 4. Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. This Third Supplemental Indenture shall form a part of the Indenture for all
purposes, and every holder of the Notes heretofore or hereafter authenticated and delivered shall be bound thereby.
SECTION 5. Trustee Makes No Representations. The recitals contained herein shall be taken as the statements of
the Issuer and the Guarantors, and the Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the adequacy, validity or sufficiency of this Third Supplemental Indenture.
SECTION 6. Governing Law. This Third Supplemental Indenture is governed by, and construed in accordance with,
the laws of the State of New York.
SECTION 7. Jurisdiction. The provisions of Section 13.09 of the Indenture are hereby incorporated mutatis
mutandis.
18
EXHIBIT B
FOURTH SUPPLEMENTAL INDENTURE TO THE INDENTURE GOVERNING THE €200,000,000 9 1/2%
SENIOR SUBORDINATED NOTES DUE 2014
FOURTH SUPPLEMENTAL INDENTURE dated as of [z], 2006, among Schefenacker PLC, a company organized
under the laws of England and Wales (the "Successor Issuer"), Reitter & Schefenacker Sound GmbH, G.L.I. Global
Light Industries GmbH, Schefenacker Vision Systems Germany GmbH, Schefenacker Vision Systems Oberrot
GmbH, ULO Fahrzeugleuchten GmbH, A. Schefenacker GmbH & Co. Grundbesitz KG, SVS Spare parts GmbH,
Schefenacker Management UK Limited, Schefenacker International USA Inc., Reitter & Schefenacker USA Limited
Partnership, Schefenacker Vision Systems USA Inc., Schefenacker Lighting Systems Australia Pty Ltd, Schefenacker
Vision Systems Australia Pty Ltd, Schefenacker Vision Systems International Pty Ltd, Sapu BT and Schefenacker
Vision Systems España, SA (the "Guarantors"), and The Bank of New York, as Trustee (the "Trustee").
W I T N E S S E T H:
WHEREAS, Schefenacker AG (the "Original Issuer") and the Trustee along with certain other guarantors named
therein are parties to that certain Indenture (the "Original Indenture"), dated as of February 11, 2004, as
supplemented by a First Supplemental Indenture dated December 21, 2004 and made between the Original Issuer, the
Trustee and Schefenacker Vision Systems España, SA (the "First Supplemental Indenture"), a Second
Supplemental Indenture, dated December 21, 2004 and made between the Original Issuer, the Trustee and
Schefenacker Vision Systems Germany GmbH (the "Second Supplemental Indenture"), a Third Supplemental
Indenture, dated [z], 2006 and made between the Original Issuer, the Guarantors and the Trustee (the "Third
Supplemental Indenture") (the Original Indenture, the First Supplemental Indenture, the Second Supplemental
Indenture and the Third Supplemental Indenture together, the "Indenture");
WHEREAS, the Successor Issuer has been duly incorporated and is validly existing under the laws of England and
Wales;
WHEREAS, the Successor Issuer has succeeded to all of the Original Issuer's properties and assets;
WHEREAS, pursuant to Section 5.01(b) of the Indenture, following such succession the Successor Issuer is obligated
to assume the Original Issuer's obligations under the Indenture and the Notes and the Guarantors are required to
confirm their guarantees;
WHEREAS, pursuant to Section 9.01(a) of the Indenture, the parties hereto are authorized to execute and deliver this
Fourth Supplemental Indenture; and
WHEREAS, all things necessary to make this Fourth Supplemental Indenture a valid supplement to the Indenture
according to the terms of this Fourth Supplemental Indenture and the terms of the Indenture have been done;
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1. Certain Terms Defined in the Indenture. Unless otherwise defined herein or the context otherwise
requires, all capitalized terms used herein without definition shall have the meaning ascribed to them in the Indenture.
SECTION 2. Assumption of Obligations. By execution hereof, the Successor Issuer expressly confirms that it has
succeeded to all of the Original Issuer's obligations under the Notes and the Indenture and expressly assumes such
obligations.
SECTION 3. Confirmation of Guarantee. By execution hereof, the Guarantors confirm that their respective
Guarantees are continuing and apply to the Successor Issuer's obligations under the Indenture and the Notes.
SECTION 4. Further Instruments and Acts. Upon request of the Trustee (but without imposing any duty or
obligation of any kind on the Trustee to make any such request), the Successor Issuer and the Guarantors shall
execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Fourth Supplemental Indenture and the Indenture.
19
SECTION 5. Counterparts. This Fourth Supplemental Indenture may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.
SECTION 6. Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. This Fourth Supplemental Indenture shall form a part of the Indenture for all
purposes, and every holder of the Notes heretofore or hereafter authenticated and delivered shall be bound thereby.
SECTION 7. Trustee Makes No Representations. The recitals contained herein shall be taken as the statements of
the Successor Issuer and the Guarantors, and the Trustee assumes no responsibility for their correctness. The Trustee
makes no representations as to the adequacy, validity or sufficiency of this Fourth Supplemental Indenture.
SECTION 8. Governing Law. This Fourth Supplemental Indenture is governed by, and construed in accordance
with, the laws of the State of New York.
SECTION 9. Jurisdiction. The provisions of Section 13.09 of the Indenture are hereby incorporated mutatis
mutandis.
20
EXHIBIT C
THIRD SUPPLEMENTAL INDENTURE TO THE INDENTURE GOVERNING THE €200,000,000 9 1/2%
SENIOR SUBORDINATED NOTES DUE 2014
THIRD SUPPLEMENTAL INDENTURE dated as of [z], 2006, among Schefenacker PLC, a company organized
under the laws of England and Wales (the "Successor Issuer"), Reitter & Schefenacker Sound GmbH, G.L.I. Global
Light Industries GmbH, Schefenacker Vision Systems Germany GmbH, Schefenacker Vision Systems Oberrot
GmbH, ULO Fahrzeugleuchten GmbH, A. Schefenacker GmbH & Co. Grundbesitz KG, SVS Spare parts GmbH,
Schefenacker Management UK Limited, Schefenacker International USA Inc., Reitter & Schefenacker USA Limited
Partnership, Schefenacker Vision Systems USA Inc., Schefenacker Lighting Systems Australia Pty Ltd, Schefenacker
Vision Systems Australia Pty Ltd, Schefenacker Vision Systems International Pty Ltd, Sapu BT and Schefenacker
Vision Systems España, SA (the "Guarantors"), and The Bank of New York, as Trustee (the "Trustee").
W I T N E S S E T H:
WHEREAS, Schefenacker AG (the "Original Issuer") and the Trustee along with certain other guarantors named
therein are parties to that certain Indenture (the "Original Indenture"), dated as of February 11, 2004, as
supplemented by a First Supplemental Indenture dated December 21, 2004 and made between the Original Issuer, the
Trustee and Schefenacker Vision Systems España, SA (the "First Supplemental Indenture") and a Second
Supplemental Indenture, dated December 21, 2004 and made between the Original Issuer, the Trustee and
Schefenacker Vision Systems Germany GmbH (the "Second Supplemental Indenture") (the Original Indenture, the
First Supplemental Indenture and the Second Supplemental Indenture together, the "Indenture");
WHEREAS, the Successor Issuer has been duly incorporated and is validly existing under the laws of England and
Wales;
WHEREAS, the Successor Issuer has succeeded to all of the Original Issuer's properties and assets;
WHEREAS, the condition set forth in Section 5.01(b)(iii) of the Indenture was not satisfied in connection with the
Succession, and, accordingly, a Default has occurred and is continuing;
WHEREAS, pursuant to Section 6.04 of the Indenture, the Holders of not less than a majority in aggregate principal
amount of the Notes then outstanding are authorized on behalf of the Holders of all Notes to waive any Default under
the Indenture and its consequences and have done so;
WHEREAS, pursuant to Section 5.01(b) of the Indenture, following such succession the Successor Issuer is obligated
to assume the Original Issuer's obligations under the Indenture and the Notes and the Guarantors are required to
confirm their guarantees;
WHEREAS, pursuant to Section 9.01(a) of the Indenture, the parties hereto are authorized to execute and deliver this
Third Supplemental Indenture; and
WHEREAS, all things necessary to make this Third Supplemental Indenture a valid supplement to the Indenture
according to the terms of this Third Supplemental Indenture and the terms of the Indenture have been done;
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1. Certain Terms Defined in the Indenture. Unless otherwise defined herein or the context otherwise
requires, all capitalized terms used herein without definition shall have the meaning ascribed to them in the Indenture.
SECTION 2. Assumption of Obligations. By execution hereof, the Successor Issuer expressly confirms that it has
succeeded to all of the Original Issuer's obligations under the Notes and the Indenture and expressly assumes such
obligations.
SECTION 3. Confirmation of Guarantee. By execution hereof, the Guarantors confirm that their respective
Guarantees are continuing and apply to the Successor Issuer's obligations under the Indenture and the Notes.
SECTION 4. Further Instruments and Acts. Upon request of the Trustee (but without imposing any duty or
obligation of any kind on the Trustee to make any such request), the Successor Issuer and the Guarantors shall
21
execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Third Supplemental Indenture and the Indenture.
SECTION 5. Counterparts. This Third Supplemental Indenture may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.
SECTION 6. Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. This Third Supplemental Indenture shall form a part of the Indenture for all
purposes, and every holder of the Notes heretofore or hereafter authenticated and delivered shall be bound thereby.
SECTION 7. Trustee Makes No Representations. The recitals contained herein shall be taken as the statements of
the Successor Issuer and the Guarantors, and the Trustee assumes no responsibility for their correctness. The Trustee
makes no representations as to the adequacy, validity or sufficiency of this Third Supplemental Indenture.
SECTION 8. Governing Law. This Third Supplemental Indenture is governed by, and construed in accordance with,
the laws of the State of New York.
SECTION 9. Jurisdiction. The provisions of Section 13.09 of the Indenture are hereby incorporated mutatis
mutandis.
22
EXHIBIT D
INSTRUMENT OF ASSUMPTION, ACKNOWLEDGEMENT AND CONFIRMATION
INSTRUMENT OF ASSUMPTION, ACKNOWLEDGEMENT AND CONFIRMATION dated as of [z], 2006, by
Schefenacker PLC, a company organized under the laws of England and Wales (the "Successor Issuer"), and Reitter
& Schefenacker Sound GmbH, G.L.I. Global Light Industries GmbH, Schefenacker Vision Systems Germany GmbH,
Schefenacker Vision Systems Oberrot GmbH, ULO Fahrzeugleuchten GmbH, A. Schefenacker GmbH & Co.
Grundbesitz KG, SVS Spare parts GmbH, Schefenacker Management UK Limited, Schefenacker International USA
Inc., Reitter & Schefenacker USA Limited Partnership, Schefenacker Vision Systems USA Inc., Schefenacker
Lighting Systems Australia Pty Ltd, Schefenacker Vision Systems Australia Pty Ltd, Schefenacker Vision Systems
International Pty Ltd, Sapu BT and Schefenacker Vision Systems España, SA (the "Guarantors").
W I T N E S S E T H:
WHEREAS, Schefenacker AG (the "Original Issuer") and The Bank of New York as Trustee along with certain
other guarantors named therein are parties to that certain Indenture (the "Original Indenture"), dated as of February
11, 2004, as supplemented by a First Supplemental Indenture dated December 21, 2004 and made between the
Original Issuer, the Trustee and Schefenacker Vision Systems España, SA (the "First Supplemental Indenture")
and a Second Supplemental Indenture, dated December 21, 2004 and made between the Original Issuer, the Trustee
and Schefenacker Vision Systems Germany GmbH (the "Second Supplemental Indenture") (the Original Indenture,
the First Supplemental Indenture and the Second Supplemental Indenture together, the "Indenture") relating to the
€200 million 9½% Senior Subordinated Notes due 2014 issued by the original Issuer (the "Notes");
WHEREAS, the Successor Issuer has been duly incorporated and is validly existing under the laws of England and
Wales;
WHEREAS, as a result of certain proposed transactions between and among the Original Issuer, the Successor Issuer
and various subsidiaries of the Original Issuer, the Successor Issuer will succeed, by virtue of universal succession, to
all of the Original Issuer's obligation, properties and assets (the "Succession");
WHEREAS, pursuant to Section 5.01(b)(i) of the Indenture, following the Succession the Successor Issuer is
obligated to assume the Original Issuer's obligations under the Indenture and the Notes and any Guarantor shall
confirm that its Guarantee is continuing and applies to the Successor Issuer's obligations under the Indenture and the
Notes;
WHEREAS, the Successor Issuer and the Guarantors desire to expressly agree, acknowledge and affirm that, from
and after the time at which the Succession occurs (i) the Successor Issuer has succeeded to all of the Original Issuer's
obligations, properties and assets as a result of the Succession, (ii) the Successor Issuer has succeeded to and assumed
all of the Original Issuer's obligations under the Notes and the Indenture and (iii) the Guarantors' respective
Guarantees are continuing and apply to the Successor Issuer's obligations under the Indenture, the Notes and this
Instrument of Assumption, Acknowledgement and Confirmation.
WHEREAS, the Successor Issuer has been in discussions with certain of its creditors with a view to possibly
affecting a restructuring of certain of its debt and the Successor Issuer and the Guarantors are of the view that, in
addition to the obligation contained in Section 5.01(b)(i) of the Indenture, the continuation of such discussions
constitute good and proper consideration for the entry of this Instrument of Assumption, Acknowledgement and
Confirmation by it and the Guarantors;
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1. Certain Terms Defined in the Indenture. Unless otherwise defined herein or the context otherwise
requires, all capitalized terms used herein without definition shall have the meaning ascribed to them in the Indenture.
SECTION 2. Assumption of Obligations. For the avoidance of doubt, by execution hereof, from and after the time at
which the Succession occurs the Successor Issuer confirms that it has succeeded to all of the Original Issuer's
obligations under the Notes and the Indenture in accordance with the terms thereof and expressly assumes such
obligations.
23
SECTION 3. Confirmation of Guarantee. For the avoidance of doubt, by execution hereof, from and after the time at
which the Succession occurs the Guarantors confirm that their respective Guarantees are continuing and apply to the
Successor Issuer's obligations under the Indenture, the Notes and this Instrument of Assumption, Acknowledgement
and Confirmation in accordance with the terms of such Guarantees as provided in the Indenture.
SECTION 4. Benefit of this Instrument of Assumption, Acknowledgement and Confirmation. The Successor Issuer
and the Guarantors acknowledge, agree and confirm that this Instrument of Assumption, Acknowledgement and
Confirmation is for the benefit of the Trustee and the Holders.
SECTION 5. Supersession by Supplemental Indenture. This Instrument of Assumption, Acknowledgement and
Confirmation shall cease to have any further force and effect upon the entry into by the Successor Issuer, the
Guarantors and the Trustee of, and shall be automatically superseded by, the supplemental indenture contemplated by
Section 5.01(b)(i) of the Indenture.
SECTION 6. Governing Law. This Instrument of Assumption, Acknowledgement and Confirmation shall be
governed by, and construed in accordance with, the laws of the state of New York.
SECTION 7. Jurisdiction. The provisions of Section 13.09 of the Indenture are hereby incorporated mutatis
mutandis.
SECTION 8. Counterparts. This Instrument of Assumption, Acknowledgement and Confirmation may be signed in
any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and
hereto were upon the same instrument.
24
CONSENT SOLICITATION STATEMENT DATED NOVEMBER 24, 2006
SCHEFENACKER AG
Solicitation of Consents to Supplemental Indenture
_____________________________________________
9 1/2% Senior Subordinated Notes Due 2014
(ISIN No.: XS0185387841; Common Code: 018538784
ISIN No.: XS0185385712; Common Code: 018538571)
€200,000,000 principal amount outstanding
In order to give a Consent, a Holder should use an electronic acceptance instruction to Euroclear and
Clearstream in accordance with their customary procedures. Any questions or requests for assistance or for additional
copies of this Statement may be directed to the Solicitation Agent at its telephone number set forth below.
The Solicitation Agent for the Solicitation is:
BONDHOLDER COMMUNICATIONS GROUP
28 Throgmorton Street
London, EC2N 2AN
Telephone: +44 207 382 4580
Facsimile: +44 207 256 7571
Attn.: Sandra Fischer
e-mail: mailto:[email protected]
www.bondcom.com/schefenacker
25