The financing of the interest payment on the bond, which is due on October 1, has not yet been secured – ESPG is therefore at risk of insolvency.
ESPG AG, specializing in science parks, published its financial figures for the first half of 2024 and showed a robust development of the portfolio despite a difficult real estate market. Sales revenue increased by 25% to EUR 7.9 millionmainly due to rental successes and inflation adjustments of existing rents.
Net operating profit (NOI) was EUR 3.5 million. High financing costs weighed on EBT However, the financing of the loan due on 1 October 2024 was strong at EUR 4.1 million. Interest payment of the 2018/26 bond [zuvor LZ-verlängert um drei Jahre] has not yet been secured, which means that the company affected by impending insolvency be.
In order to continue the development of the Science Park portfolio and avert existential threats, a Restructuring projects according to StaRUG be filed with the competent local court. Only the claims of the creditors, especially the bondholders, are affected, while property companies and operational business remain unaffected. The Restructuring plan provides for a waiver of claims by creditors in return for appropriate compensation, whereby the possibility of participation in the company’s success is also examined.
The aim is to make the plan legally effective by the end of October 2024, so that the Interest payment on 1 October is cancelledUnder the conditions of the restructuring plan becoming legally binding, investors have pledged to invest around EUR 9.5 million in fresh liquidity to provide. Frank Günther was appointed as General Representative and Chief Restructuring Officer of ESPG AG to accompany and implement the StaRUG process.
Frank Günthe on this: „With over 25 years of experience in restructuring financial liabilities and the successful implementation of more than 50 transactions, I am familiar with these situations. We are working hard to ensure the financial stability of ESPG AG quickly and sustainably. The StaRUG procedure is a very good instrument for this and has proven itself many times in the recent past. […]. I am convinced that we will quickly find a good solution in the interests of all stakeholders.”
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