FINANCE: The restructuring of IVG has been completed following the final sign-off of its insolvency process by a German court yesterday.
The German property giant can operate “without any restriction once again” after the competent district court of Bonn adopted a resolution that concluded the insolvency proceedings for the company’s assets.
The move brings to a close a year-long insolvency process which the former listed company entered voluntarily in August last year in an effort to restructure its €4bn (£3.2bn)debt pile.
The company has since reduced its debt by around €2.2bn through a debt-for-equity swap that handed ownership to its former creditors. These include Cerberus Capital Management, Marathon Asset Management, Varde Partners, Aurelieus Capital Management and Davidson Kempner Capital Management.
Parallel to the financial restructuring, the company had taken on a new operational direction, establishing the three business areas of real estate, institutional funds and caverns as independent business entities.
In the same statement IVG announced that the group’s new supervisory board met for its constituting meeting, after former shareholder representatives stepped down as at 31 August 2014.
In line with a proposal from IVG’s board of management, the Bonn district court has appointed new members for the vacant positions for the period until the next annual general meeting of the company.
This includes the selection of former chief executive of NRW Bank, Dietmar Binkowska, as the new chairman of the supervisory board.
Hans-Joachim Ziems, member of the IVG Immobilien board of management in charge, said: “Following the comprehensive financial and operating restructuring, the company is now back on a solid footing and ready for the capital market.
“Our job of preventing the liquidation of the company and creating the foundations for a successful future is done.”
Key data on the insolvency plan proceedings at IVG Immobilien
21 August 2013: Initiation of protective shield proceedings
1 November 2013: Initiation of self-administered insolvency plan proceedings
13 December 2013: First creditors’ meeting (reporting deadline) approves continuation under self-administration
24 February 2014: Insolvency plan set out following positive preliminary examination by insolvency court
20 March 2014: Creditors and shareholders at the discussion and voting meeting approve the insolvency plan with the required majorities
13 June 2014: Confirmation of IVG Immobilien’s insolvency plan by Bonn district court (insolvency court)
11 July 2014: Bonn regional court rejects legal action
15 July 2014: Court confirmation of IVG Immobilien’s insolvency plan takes binding legal effect
15 September 2014: Resolution by Bonn district court to lift insolvency proceedings
bridget.oconnell@estatesgazette.com
