Disclosure of Inside Information Pursuant to Article 17 of Regulation (EU) No. 596/2014
Berlin, August 12, 2024 – The sole holder of the 2021/2029 Bond (ISIN DE000A3H3D51 / WKN A3H3D5) informed ACCENTRO today that it no longer supports the comprehensive restructuring solution. Against this backdrop, the bondholder of the 2021/2029 bond is currently engaged in active and constructive negotiations with a group of significant bondholders of the 2020/2026 bond, who collectively represent approximately 55% of the outstanding 2020/2026 bond (“Ad Hoc Group”) regarding a potential sale and transfer of the 2021/2029 bond to certain members of the Ad Hoc Group. ACCENTRO’s Management Board expects a resolution to these negotiations in the near future.
A positive outcome of the negotiations would result in the current bondholder of the 2021/2029 bond transferring its position in full to certain members of the Ad Hoc Group. In this case, the Management Board is confident that the comprehensive restructuring negotiations can be continued efficiently and effectively. The ongoing restructuring negotiations are focused on a financing solution led by (i) the bondholders of the 2020/2026 bond or, alternatively, (ii) NongHyup Bank as trustee of the Shinhan AIM Structured Investment Fund No. 5.
These restructuring negotiations will then continue based on the following current key assumptions:
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Strategic realignment with a complete focus on the privatization business.
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Exit from the development and management of the company’s own real estate portfolio. Expected total proceeds from the sale of the existing real estate portfolio and owner-occupied properties in the range of EUR 250 million to EUR 300 million.
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Marketing and sale of the privatization assets, with expected total proceeds in the range of EUR 215 million to EUR 235 million, with a portion of the proceeds to be used for reinvestment in rebuilding the privatization portfolio, targeting a sustainable volume of approximately EUR 85 million to EUR 105 million.
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An additional cash-generating reduction of other receivables and equity investments in the range of EUR 20 million to EUR 25 million is expected.
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Comprehensive restructuring of both the debt and equity sides of ACCENTRO. The details depend, among other things, on further discussions with key existing stakeholders and possibly third parties.
In the event that negotiations regarding a potential sale and the transfer of the 2021/2029 bond to certain members of the Ad Hoc Group fail, the Management Board would have to immediately reassess its assessment of the company’s ability to continue as a going concern and determine whether it would need to file for insolvency. A liquidation analysis commissioned by ACCENTRO indicates a recovery rate of 39% for secured bondholders in a base-case scenario.
At the same time, the Ad Hoc Group remains, in principle, willing to provide ACCENTRO with interim financing under certain conditions, including for the interest payment due on August 13, 2024, on the 2020/2026 bond and for other potential short-term liquidity needs of ACCENTRO, in particular for the interest payment due on September 23, 2024, on the 2021/2029 bond. Accordingly, ACCENTRO and the Ad Hoc Group are currently negotiating a letter of commitment, including a term sheet. ACCENTRO therefore expects to make the interest payment due on August 13, 2024, within the so-called “grace period” specified in the bond terms, which is 30 days from the respective due date. Against this backdrop, ACCENTRO’s liquidity position—with freely available liquidity in the low single-digit millions (excluding the effects of any interim financing)—is sufficient to successfully conclude further discussions on a long-term financing solution, including a realignment of ACCENTRO’s capital structure, by the end of the year.
Against this backdrop and at the request of the Ad Hoc Group, ACCENTRO will apply for the issuance of the previous expanded “independent business review” in accordance with the IDW S6 standard.
Person responsible for the announcement:
Thomas Eisenlohr, Head of Investor Relations
Tel.: +49 (0)30 887181272
eisenlohr@accentro.de
Berlin, August 12, 2024
The Executive Board: ACCENTRO Real Estate AG Kantstraße 44/45 D-10625 Berlin
ISIN: DE000A0KFKB3 / DE000A3H3D51 / DE000A254YS5
Stock Exchanges: Frankfurt Stock Exchange, Regulated Market (Prime Standard) / Luxembourg Stock Exchange
Investor Relations Contact:
Thomas Eisenlohr
ACCENTRO Real Estate AG
Kantstraße 44/45
10625 Berlin
Email: eisenlohr@accentro.de
Phone: +49 (0)30 88 71 81 272