Meeting of creditors approves paragon AG's insolvency plan

paragon AG / Insolvency 16.04.2010 14:35 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Meeting of creditors approves paragon AG's insolvency plan Delbrück, 16 April 2010 - The company paragon AG will continue to operate with the existing ownership and management structure. Within the framework of the exploratory and reconciliation hearing before Paderborn District Court, on 16 April 2010 the creditors voted in favour of the insolvency plan presented by the company. Acknowledged claims are to be satisfied with a quota of approx. 12.7 percent. In the case of a plan procedure, a specific ratio is paid out to creditors immediately. In return, they waive the remainder of their claims; the company is then able to continue operating with a significantly reduced debt burden. The quota of approx. 12.7 percent means that the banks in particular have had to absorb substantial write-offs. In the autumn of 2009 paragon failed to reach agreement with its circle of creditors, even though an average ratio of 61 percent had been offered on the bank liabilities totalling EUR 46.7 million. Following the positive vote for the insolvency plan, the shares of paragon AG retain their intrinsic value. In addition, it has been possible to safeguard 321 jobs at the sites in Delbrück, Suhl, St. Georgen and Nuremberg. In the wake of the restructuring initiated in the autumn of 2008, with which paragon responded to the worldwide crisis in the automobile industry, the company announced 51 redundancies and concluded 42 termination agreements. The company's workforce has declined from 457 on 30 September 2008 to the current total, inter alia due to the sale and closure of non-domestic activities. Due to the normalization of the market in Delbrück and Nuremberg a total of 16 engineers and managers are being sought. The operating business activities were positive for the past twelve months. Contact: paragon AG Schwalbenweg 29 D-33129 Delbrück Tel.: +49 (0) 52 50 - 97 62 - 0 Fax: +49 (0) 52 50 - 97 62 - 60 Internet: www.paragon-online.de Press Spokesman Matthias Hack Tel.: +49 (0) 52 50 - 97 62 - 141 Fax: +49 (0) 52 50 - 97 62 - 60 e-mail: matthias.hack@paragon-online.de Corporate Communications Marc Götte Tel.: +49 (0) 52 50 - 97 62 - 161 Fax: +49 (0) 52 50 - 97 62 - 60 e-mail: marc.goette@paragon-online.de 16.04.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: paragon AG Schwalbenweg 29 33129 Delbrück Deutschland Phone: +49 (0)5250 97 62 - 0 Fax: +49 (0)5250 97 62 - 60 E-mail: investor@paragon-online.de Internet: www.paragon-online.de ISIN: DE0005558696 WKN: 555869 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------