Germany’s Adler Group reaches restructuring agreement with its bondholders, ET RealEstate
BENGALURU: Germany‘s embattled landlord Adler Group said on Friday that it has reached a restructuring agreement with its bondholders which will strengthen its equity by 2.3 billion euros ($2.49 billion).
The agreement also provides additional liquidity of up to 350 million euros, the German company said. As part of the agreement, the bondholders will hold 75% of total voting rights in the company.
Adler, one of Germany’s biggest landlords, said its subsidiary AGPS BondCo plc will soon launch a consent solicitation process and a UK restructuring plan if the transaction does not go through during the consent solicitation period.
The agreement comes after a UK Court of Appeal overturned the approval of company’s previous restructuring plan earlier this year.
Adler has been fighting a liquidity crisis triggered by a downturn in the domestic property market, rising energy and building prices caused by Russia’s invasion of Ukraine and the fallout from the COVID-19 pandemic.
The company said that it expects the restructuring to be completed by Sept. 2024 or shortly thereafter.
