White & Case advises Adler Group on agreement with bondholders for comprehensive recapitalization

Global law firm White & Case LLP has advised Adler Group S.A. and its subsidiaries on the agreement with a steering committee of bondholders supporting a comprehensive recapitalization of the Group.

Part of the agreement is the extension of the maturities of the Group’s existing debt and the strengthening of equity by converting existing bonds into subordinated perpetual bonds, which are expected to be classified as equity under International Financial Reporting Standards. Adler expects the comprehensive recapitalisation transaction to be implemented and concluded by end of September 2024 or shortly thereafter.

In addition, the Adler Group is to be provided with fresh liquidity of up to €100 million and the option of retaining proceeds from disposals of up to €250 million. As part of this recapitalization, the bondholders are to receive the majority of the voting rights of the Adler Group. Upon completion of the transaction, all outstanding ordinary shares will represent 25 percent of the total voting rights of the Adler Group. The remaining 75 percent of the total voting rights will then be held by the bondholders of the perpetual bonds.

The Adler Group manages approximately 25,000 residential units, the majority of which are located in Berlin and North Rhine-Westphalia.

The White & Case team that advised on the transaction was led by partners Roger Kiem, Andreas Lischka, Yannick Adler and Gernot Wagner (all Frankfurt) and included partners Christian Pilkington, Charles Balmain, Ben Davies, John Rogerson, Anna Soroka (all London), Karsten Wöckener, Vanessa Schürmann, Rebecca Emory, Sebastian Schrag, Bodo Bender and Thilo Diehl (all Frankfurt), local partners Alisa Preissler, Peter Becker, Patricia Galts, Markus Fischer (all Frankfurt) and Alexandre Hublet (Luxemburg, Brussels) and associates Timo Lockemann, Phoebos Lazaratos, Patrick Hinz, Ann Marie Hovey, Lina Fiedler, Jan-Christopher Wilhelms, Darleen Stoeckl, Marie-Christin Frowerk, Melanie Schubert, Angela Fleck, Pia Berger (all Frankfurt), Tobias Zuendorf (Hamburg), Mina Nazim, Nayomi Skinner, Diala Kakish, Amulang Povaeva, Ashwini Mohan (all London) and Chloe Carchiolo (Luxemburg).

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