The ailing real estate group Adler Group has reached an agreement with a core group of creditors to adjust the terms of the bonds issued by Adler.
For this purpose, the real estate group had agreed to provide external financing with a volume of 937.5 million euros, the company announced on Friday evening.
The loan has a final interest rate of 12.5 percent and a term until June 30, 2025. It is intended to refinance financial liabilities of the Group and its subsidiaries, including Adler Real Estate and Consus Real Estate.
The Adler Group share rose significantly in the after-hours trading.
The loan will be secured by the Adler Group, it said.
However, the provision of external financing is subject to a positive restructuring report, an adjustment to the bond conditions, the provision of the agreed collateral and other closing conditions customary in the market.
At the same time, it was agreed that further financial liabilities can be taken out subject to certain restrictions.
The Adler Group undertakes not to make any dividends or other payments or to make distributions to its shareholders.
Adler also announced that it would strengthen management with a restructuring expert.
In order to support the financial stabilization process, the Board of Directors is to be expanded to include an additional non-executive member with extensive capital market experience.
The candidates for both positions are to be coordinated with the bondholders.