IVG Immobilien’s creditors and shareholders have approved an insolvency plan for the company.
Creditors approved the plan with a total of 99.47% of votes, while shareholders approved it with 56.93% of votes. The plan includes a debt-equity swap taking IVG off the stock market.
In total, the company has €3.2bn in debt to restructure, and according to the draft, an insolvency ratio of at least 60% must be paid to non-subordinated unsecured creditors.
“Former shareholders’ pre-emption rights have been excluded for the capital increases planned after a capital reduction to zero,” IVG said, while “no provision has been agreed in the insolvency plan for subordinated creditors.”
Should the court approve the plan, the implementation of the capital measures is planned for mid-2014, IVG expects to be then able to lift insolvency proceedings by year-end.
Last week Wolfgang Schäfers, board member at IVG, in charge of drafting the insolvency plan, resigned. In a letter to the supervisory board, he explained laying the foundations for the recovery of the company had been what he wanted to achieve before leaving.
Meanwhile, IVG has sold its retail fund business to Deutsche Fonds Holding with retroactive effect from 1 January. The Private Funds Management arm, with around €2.7bn in assets under management, was sold for an undisclosed sum and is still subject to approval by the cartel authorities.
“With the takeover, the Deutsche Fonds Holding AG has increased its fund assets under management to €5.6bn,“ the company said.