IVG Immobilien has said talks with its major creditors and shareholders on the sustainable restructuring and financing of the company are at an 'advanced' stage.
IVG Immobilien has said talks with its major creditors and shareholders on the sustainable restructuring and financing of the company are at an 'advanced' stage.
Germany's largest listed real estate investor aims to reach a concept agreement with major stakeholders ahead of its Annual General Meeting of shareholders on 30 August where the proposals will be put to the vote.
The indebted German property firm said last week that a preliminary liquidity analysis shows it may need funds of up to €120 mln from October, or the company's future could be in doubt.
The company, which has almost €4 bn in debt, said the shortfall may arise due to the costs of its restructuring and because it has shut down a cash pool due to its worsening situation, newswire Reuters reported.
'An expected liquidity need of approximately €120 mln, not yet met and possibly posing a risk to the company as a going concern, might arise between October 2013 and March 2014,' it said.
Commenting on the talks with IVG's major creditors and shareholders, CEO Dr Wolfgang Schäfers said the company was continuing to work towards placing IVG on a sound financial basis in the months to come, but added that a holistic restructuring would be a 'great challenge'. 'The restructuring- and financing strategy discussed and the constructive talks with the participants are a fundamentally good sign for the ongoing process, even though the negotiations show that a holistic restructuring of IVG will be a great challenge due to its complexity and the large number of interests involved.'
