IVG’s application for protective shield proceedings has been approved by the local court in Bonn.
The move will enable the group to self-administer its restructuring and refinancing.
Düsseldorf-based attorney Horst Piepenburg, an expert in restructuring, has been appointed preliminary trustee for IVG Immobilien AG.
IVG applied for the protective shield proceedings earlier this week and said the move was unavoidable after the representatives of the creditors Synloan 1, LBBW loan and Synloan 2 convertible bond were unable to agree a restructuring plan despite rounds of negotiation. This impasse threatened the company’s ability to function as a going concern.
“IVG is in a very good position to bring the proceedings that lie ahead to a successful conclusion quickly,” said IVG Immobilien CEO Wolfgang Schäfers.
Protective shield proceedings were introduced last year to enable company restructuring and allow a company to restructure and comprehensively re-organise itself by following an insolvency plan in coordination with its creditors but while retaining corporate responsibility.
The application applies to IVG Group’s parent company, IVG Immobilien AG, and does not affect the subsidiaries themselves.
