Austria's Immofinanz, the group resulting from the merger of Immofinanz and Immoeast, has reached an agreement with Constantia Packaging on the restructuring of a EUR 512 mln bond. The agreement puts an end to a longstanding dispute on a EUR 520 mln missing payment provided by Immoeast to Immofinanz Beteiligungs (IBAG) through the purchase of a bond in 2008.
Austria's Immofinanz, the group resulting from the merger of Immofinanz and Immoeast, has reached an agreement with Constantia Packaging on the restructuring of a EUR 512 mln bond. The agreement puts an end to a longstanding dispute on a EUR 520 mln missing payment provided by Immoeast to Immofinanz Beteiligungs (IBAG) through the purchase of a bond in 2008.
As part of the new agreement reached last week, Immofinanz will receive payments in cash, stock, and property assets in an operation which will free up around EUR 600 mln in funds. Immofinanz said it plans to use the new resources to increase the financial stability of its real estate portfolio.
Constantia Packaging, a vehicle owned by an Austrian family that also used to control Immofinanz indirectly via Constantia Privatbank, will pay Immofinanz EUR 217 mln in cash and an equivalent amount of approximately 55 million Immofinanz shares worth around EUR 133 mln within the next weeks. The deal also envisages the transfer of 113 companies held by the associated Constantia Packaging to the Immofinanz Group.
'Aside from all closing conditions, the extensive restructuring of Immofinanz is completed and the basis for the further development and optimization of the company group is laid,' the group said.
Immofinanz, which in 2008 transferred the funds to a bank account held by IBAG with Constantia Privatbank, had been investigating the matter since then. Contantia Packaging, which at the time owned Constantia Privatbank before the bank was bailed out by Austria's five largest banks, had announced earlier that it intended to assume and meet IBAG's liabilities and obligations.