German landlord Adler Group reaches restructuring agreement with its bondholders

Adler SA

24/05/2024 21:48

May 24 (Reuters) - Germany's embattled landlord Adler
Group  ADJ.DE  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.
    
    

($1 = 0.9219 euros)

 (Reporting by Gursimran Kaur in Bengaluru; Editing by Chizu
Nomiyama)
 ((GursimranKaur.Mehar@thomsonreuters.com;))