German property group IVG Immobilien has emerged from insolvency following a major debt restructuring and is now considering options for a stock market listing, the company said on Tuesday.
German property group IVG Immobilien has emerged from insolvency following a major debt restructuring and is now considering options for a stock market listing, the company said on Tuesday.
A local German court declared the insolvency proceedings completed, putting an end to a year-long restructuring, Bonn-based IVG said in a statement.
The company, which owns flagship assets such as London's landmark Gherkin tower and Frankfurt's Squaire building, both currently on sale, began proceedings in 2013 and later delisted its shares.
'Following the comprehensive financial and operating restructuring, the company is now back on a solid footing and ready for the capital market,' said Hans-Joachim Ziems, an IVG board member who led the restructuring. 'Our job of preventing the liquidation of the company and creating the foundations for a successful future is done.'
Under the restructuring programme, the creditors of a syndicated loan totalling €1.35 bn and a €100 mln loan originally extended by LBBW ended up with 80% of IVG's stock. Holders of a €400 mln convertible bond took control of the remaining 20%.
The company, which sought creditor protection last August, cut its debt by €2.2 bn as part of the operation.
IVG, Germany's largest property company by assets under management, entered self administration in November last year. The company filed for court protection after failing to reach agreement with creditors on the restructuring of its €3 bn debt pile.
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.