GERMANY – IVG Immobilien has been given the green light to self-administer its insolvency after several months under a so-called 'protective shield'.
In August, the company shocked investors by announcing it had to initiate insolvency procedures after creditors could not agree on a recovery plan.
Today, the same district court in Bonn that passed the protective shield proceedings in August confirmed IVG’s right to self-administer its insolvency.
"We were able to use the time under the protective shield proceedings to establish the requirements for the successful reorganisation of the company," said Wolfgang Schäfers, chief executive at IVG.
IVG said: "The board of management will now continue to draw up an insolvency plan, which is scheduled to be presented to the court before Christmas of this year.
"If the plan is then accepted by the creditors and confirmed by the court, the insolvency proceedings can be lifted in the first half of 2014 as planned."
IVG said its operational subsidiaries remained "unaffected by the proceedings at the parent company".
The news about the court decision led to a hike in IVG’s share price on the Frankfurt stock exchange of as much as 50%.
The stock crept just above the €1 threshold, which it dropped below after the insolvency announcement in August.