UK court overturns approval of German property group Adler's restructuring plan (updated)

Adler SA

23/01/2024 10:22

(Adds background, quote from judgment in paragraphs 3-5)
       LONDON, Jan 23 (Reuters) - Adler Group SA's  ADJ.DE 
restructuring plan to prevent the embattled German property
firm's collapse should not have been approved by a London court,
the Court of Appeal ruled on Tuesday.
    The plan – designed to help service external debts of
approximately 6 billion euros ($6.5 billion) – was approved last
year despite opposition from some bondholders.
    Under the plan, the company would borrow around 938 million
euros of new funding and the terms of unsecured notes that
mature between 2024 and 2029 would be amended.
        A group of creditors holding notes that mature in 2029 –
including investment firms DWS Investment GmbH and Strategic
Value Partners – opposed the plan, saying they would be better
off if Adler Group were formally liquidated.
  
        The High Court authorised the plan in April but the
Court of Appeal overturned that decision, with Judge Richard
Snowden saying the lower court was wrong "to impose the plan on
the dissenting class of 2029 noteholders".

($1 = 0.9187 euros)

 (Reporting by Sam Tobin; Editing by Sachin Ravikumar and Sarah
Young)
 ((Sam.Tobin@thomsonreuters.com;))