Wolfgang Schäfers, CEO of Germany's listed property group IVG Immobilien, has resigned as a member of the management board with immediate effect.
Wolfgang Schäfers, CEO of Germany's listed property group IVG Immobilien, has resigned as a member of the management board with immediate effect.
'It was my personal goal to dedicate my full energy to the restructuring of IVG and to help create the foundations for the company going forward. This course is now set,' Schäfers wrote in a letter to the chairman of the supervisory board, Michael Keppel.
The resignation comes shortly after the approval by the Bonn District Court of IVG's insolvency plan at end-February. The various stakeholders have been asked to decide on the future course of action at a discussion and voting meeting.
Under the plan, the creditors of a syndicated loan totalling €1.35 bn and a €100 mln loan originally extended by LBBW would end up with 80% of IVG's stock. Similarly, holders of a €400 mln convertible bond would take control of the remaining 20%.
IVG, which sought creditor protection last August, said the plan will be discussed and voted upon on March 20, 2014.
If the plan is accepted by the creditors and confirmed by the court, the insolvency proceedings can be lifted in the first half of 2014 as planned. IVG Immobilien’s share capital will be reduced to nil and then simultaneously increased by adding receivables and an additional cash component. Creditors taking part in the capital increase would also have to agree upon a partial waiver of their debts.
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 a 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.