Sky Headquarters is a well-known building in Preos’ portfolio. The company wants to restructure a 250 million euro bond in the short term. Believers are skeptical.
(Photo: imago stock&people)
Berlin, Dusseldorf There is a lot of money at stake and it involves an investor who is as prominent as he is controversial. In the end, a contest vote will decide on the future of a EUR 250 million bond from the Frankfurt real estate company Preos AG. Three major creditors have announced they will vote against the company’s plans to restructure the paper. According to Handelsblatt information, they already represent an amount in the double-digit millions.
Preos is planning a massive intervention in the contracts: The company wants to extend the term of the convertible bond, which is due at the end of 2024, by five years. Instead of 7.5 percent, it only wants to pay out two percent interest. The rest are to be deferred until the end of the term and expire if the creditors want to convert the bonds into shares in 2029. The right of termination in the event of non-payment of interest in December is also to be abolished.
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