After numerous management changes in recent years, mismanagement and the slump in the real estate industry, the real estate group is deep in crisis.
(Photo: mauritius images / Timon Schneider / Alamy / Alamy Stock Photos)
Zurich, Frankfurt, Berlin It was a power gamble – and major investor Karl Ehlerding lost the game: the board of the crisis-ridden real estate group Corestate announced on Tuesday that it would support the bondholders’ recovery plan. Corestate shares then jumped 44 percent.
Among other things, the plan provides for a conversion of the debt into shares, through which the creditors receive a share of more than 80 percent in the Corestate. In return, the creditors will waive around 80 percent of their claims from two outstanding bonds with a volume of around EUR 500 million. These would have been due at the end of November and in April 2023.
Corestate’s real estate assets are to be realized and the proceeds used to repay debt. In return, the bondholders want to subscribe 25 million euros in new debt capital, with which Corestate is to realign the business.
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