IVG’s chief executive, Wolfgang Schäfers, has resigned from the German business, effective today.
Schäfers, who was a member of the board of management, played a key role in initiating the firm’s proposed restructuring plan and debt for equity swap after the company amassed more than €4bn (£3.3bn) of debt.
A statement from IVG said: “In creating an insolvency plan for IVG and implementing further measures for financial and operational restructuring, Schäfers had played a key role in initiating the intended restructuring and strategic reorientation of the company. ?
in a letter to the chairman of the supervisory board of the company, Michael Keppel, Schäfers said: “It was my personal goal to dedicate my full energy to the restructuring of IVG and to help to create the foundations for the company going forward. This course is now set.”
Following its review, the Bonn District Court had on 24 February 2014 approved the insolvency plan for IVG prepared by the board of management.
The various stakeholders are now called on to decide on further procedure at a discussion and voting meeting on 20 March. ?
In an initial statement Keppel announced: “The supervisory board accepts Professor Schäfers’ decision with respect and appreciation. We owe him our thanks for his contribution and his faithful cooperation.”
Under the proposed plan IVG will reduce its capital to nil and then issue new shares which will give some creditors back 60% of their investment, while equity holders’ investment will be wiped out.
Following the debt-for-equity swap, IVG will be split into three separate businesses overseeing its real estate operations, its institutional funds unit and its gas storage business.
IVG has €3.2bn of real estate, as well as an €11.8bn institutional fund management business, a €3.4bn retail fund management business and a caverns business which stores gas and oil.
bridget.o’connell@estatesgazette.com
