A court in the German city of Bonn has appointed a preliminary trustee for IVG Immobilien.
A court in the German city of Bonn has appointed a preliminary trustee for IVG Immobilien.
The court assigned Horst Piepenburg, a Dusseldorf-based lawyer and an expert in restructuring, after approving IVG's application for the opening of protective shield (credit protection) proceedings based on self-administration.
IVG is the largest listed property company in Germany by assets under management. In total IVG has €21 bn of assets under management, including €4 bn of property on its balance sheet and almost €12 bn held in its institutional real estate fund business.
Last week IVG filed for court protection after failing to reach an agreement with creditors over the restructuring of its €3 bn debt pile.
The Bonn-based company said the application to open shield proceedings was 'unavoidable' but added that it will not affect the running of the operating business. The company said it will continue talks with creditors in order to reorganize its debt.
'Despite weeks of intensive mediations and negotiations efforts, the individual creditor groups were unfortunately unable to agree on a consensual solution taking into account all stakeholder interests,' said CEO Wolfgang Schäfers.
'This is all the more regrettable because key shareholders of the company have signalled their support to the restructuring plan presented by creditor representatives,' Schäfers added.
