Corestate Capital, the listed European real estate company that has been fighting to continue as a going concern, has reached an important milestone enabling it to restructure bonds.
Conditions required have been met, the firm said on Wednesday, following a lock up agreement on 2 December and changes to the company’s management board.
The company has €17.3 bn of assets under management and is listed on the Frankfurt Stock Exchange.
At an Extraordinary General Meeting on 20 December, the company agreed to increase the authorized capital with an approval of 99.7% and thus the required majority to amend the articles of association.
Accordingly, the management board was allowed to increase Corestate’s share capital by up to €15 mln by issuing up to 200 mln new shares.
The management board said it planned to use the new authorized capital, partly to execute a debt-to-equity swap against contribution of the receivables from the bonds issued by Corestate. Stavros Efremidis, CEO, left the company at the end of December as previously announced
Law firm Weil, Gotshal & Manges said last month its German offices advised on the successful implementation of a ‘restructuring concept’ thereby creating the ‘basis for the continuation of the company as a going concern’.
As reported in August last year, Corestate reported a steep decline in first-half earnings as a one-off restructuring charge couple with macro economic challenges caused problems.
