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
 
---------------------------------------------------------------------------