June

Canaccord Genuity advises sole shareholder on Schefenacker restructuring

On 29 June 2007, Schefenacker plc (the "Company") announced that it had successfully concluded its financial restructuring plan with its senior lenders, bondholders, the major global automotive manufacturers and our client, Dr. Alfred Schefenacker, who held 100% of the Company's equity and is immediate past Chairman of the Supervisory Board.

The Company is the leading global supplier of mirrors to the automotive industry with a global network of production facilities and operates 27 manufacturing plants across Europe, USA, Asia and Australia with approximately 7,900 employees. Turnover in 2006 was £918m.

The restructuring will effectively reduce the Group's existing debt facilities of c.£430m to c.£320m, halve the Group's annual cash interest burden, inject new money of £55m and provide for the ring fencing and disposal of the Group's lighting division allowing the profitable international mirrors business to prosper.

Canaccord Genuity was engaged by Dr. Schefenacker in October 2006 to provide restructuring advice in light of covenant defaults and an anticipated cash shortfall and to assist Dr. Schefenacker in his decision to invest further equity in the Company to retain a meaningful economic interest.

Canaccord Genuity worked intensively with principals and advisors to the Company, major customers and senior lenders to agree the terms for the financial restructuring. Dr. Schefenacker will retain a minority interest of 25.4% and a seat on the board in the restructured group following an additional investment of £20m.

Canaccord Genuity was sole financial adviser to Dr. Alfred Schefenacker. We had a significant impact on the structuring of the Group’s capital structure going forward.

Back to Listing