UK court approves German property group Adler's restructuring plan (updated)

Adler SA

12/04/2023 10:49

(Adds details)
       LONDON, April 12 (Reuters) - Adler Group SA's  ADJ.DE 
restructuring plan to prevent the embattled German property
firm's imminent collapse was approved by London's High Court on
Wednesday, despite opposition from some bondholders.
    Judge Thomas Leech sanctioned the plan following a hearing
last week, at which lawyers representing Adler's English
subsidiary said the group was likely to enter insolvency
proceedings at the end of April if the plan was not approved.
    Adler, one of Germany's biggest landlords, is fighting a
liquidity crisis triggered by a downturn in the German property
market, rising energy and building prices caused by Russia's
invasion of Ukraine and the impact of the COVID-19 epidemic.
        Its troubles also follow allegations made in 2021 by
short seller Viceroy Research that the company's balance sheet
had been artificially inflated, accusations which Adler rejected
at the time.
  
        Adler has external debts of approximately 6.1 billion
euros ($6.66 billion), but has secured new financing of 938
million euros as part of a planned restructuring.
  
    Lawyers representing Adler's English subsidiary AGPS Bondco 
told the High Court last week that Adler Real Estate AG
 ADLG.DE  will be unable to pay a 500 million-euro debt due
later this month.

 (Reporting by Sam Tobin; editing by Paul Sandle)
 ((Sam.Tobin@thomsonreuters.com;))