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 The situation at the real estate group Corestate is coming to a head: The company’s management warned on Friday evening that the negotiations with creditors about the restructuring of the highly indebted group “can no longer be brought to a successful conclusion with the necessary probability.”
The Executive Board is now assuming that a bond worth around 200 million will be due for repayment on November 28th. Against this background, the company is examining the obligation to file for insolvency. Such a request could be made within a month.
The real estate developer and financier recently lost large parts of its core business. Sales shrank from almost 157 million euros in the first nine months of 2021 to around 50 million euros. The loss in the first three quarters of 2022 amounted to 582 million euros because Corestate had to make large-scale write-downs on the reported value of subsidiaries.
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