SPGH.L Regulatory News (SPGH)

Superglass Holdings Plc

('Superglass' or 'the Company')

Period-end Trading Statement, Banking Update and Proposed Capital Restructuring

Introduction

Superglass Holdings PLC, the UK's leading independent manufacturer of glass wool mineral fibre insulation solutions, today releases a period-end trading update for the financial year ended 31 August 2011 together with an update on its banking facilities and proposals for a capital restructuring.

Period-end Trading Update

Sales volumes are ahead of forecast in cured products, compensating for continuing underperformance in CERT-related blowing wool product lines. As a result, output in non-CERT-dependent product lines is running at close to full capacity.

However, product mix, market weakness and cost pressures are all continuing to affect margins and, as a result, the Board's expectations as to underlying trading performance for the financial year just ended are slightly reduced from the trading update statement of 22 June 2011. Primarily as a result of the shortfall in trading performance and the acceleration of capital expenditure following the furnace failure just over twelve months ago, net debt has increased slightly from the previous financial year end at approximately £17.7m. The insurance claim in respect of the furnace failure has not yet been fully settled.

Banking Update

As noted in previous statements, constructive discussions with the Company's bankers, Clydesdale Bank plc (the 'Bank'), have continued with a view to ensuring that the Company's debt facilities remain appropriate to the Company's current operating performance.

The Company has now agreed further temporary and conditional relaxations and amendments to its facility structure with the Bank, being (i) the deferment until 31 October 2011 of the capital repayment which would otherwise have been due on 31 August 2011; and (ii) a waiver of the requirement to test the financial covenants as at 31 August 2011 contained in the Company's existing facility agreement with the Bank.

Proposed Capital Restructuring

The Board has also been pursuing the options for a capital restructuring (the 'Restructuring') in collaboration with the Bank and has reached agreement in principle on headline terms for addressing the debt component of the Restructuring, including the conversion of a proportion of the current bank debt into an instrument or securities convertible into shares in the Company, subject to certain exercise or conversion criteria.

It is envisaged that the Restructuring will (subject to the requisite shareholder approvals being granted at a general meeting proposed to be convened in due course) incorporate a substantial equity issue. Formal completion of the Restructuring, including the debt conversion agreed with the Bank, will be conditional upon successful completion of the equity fundraising. In the event that the relevant shareholder approvals are not granted, or the proposed equity funding is not otherwise completed in accordance with the Bank's requirements, then the Company may be unable to satisfy the financial covenants and/or comply with the debt service obligations within the terms of its current bank facilities.

In the Company's trading update statement of 22 June 2011, the Board stated that the Company had identified measures which it could take to improve its competitiveness if sufficient funding were available. A fundamental purpose of the proposed equity issue would be to provide the necessary financial resources to enable the Company to invest in and modernise its plant to drive significant operating efficiency gains.

The Company is working towards finalising the Restructuring and a further announcement will be made as soon as practicable following agreement.

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Unaudited information

The information in this announcement is based on unaudited financial information relating to the financial period ended 31 August 2011.

Forward-looking statements

This announcement includes forward-looking statements. All statements other than statements of historical fact included within this announcement including, without limitation, those regarding Superglass' financial position, business strategy, plans and objectives of management for future operations, are forward-looking statements. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'prepares', 'anticipates', 'expects', 'intends', 'may', 'will' or 'should' or, in each case, their negative or other variations or comparable terminology. Investors should specifically consider the factors identified within this announcement which could cause actual results to differ before making an investment decision. Such forward-looking statements include known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based upon numerous assumptions as to Superglass' present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date at which they are made. Save as required by the Takeover Panel, the FSA, The London Stock Exchange or applicable law, including, without limitation, the City Code, the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules, Superglass expressly disclaims any responsibility to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.