GERMANY – Germany's IVG Immobilien may have to be dissolved after debtors failed to reach consensus on a refinancing plan before their 30 July deadline.
Last week, the real estate investment manager had been openly optimistic that a joint solution for refinancing would be found, despite one debtor questioning the basis of the company's "worst-case scenario".
In an ad hoc meeting on 19 July, IVG had agreed with the creditors of Syn Loan I, Syn Loan II and a convertible bond to reach an agreement by 30 July.
But yesterday, IVG's board said: "No such joint, consensual restructuring proposal has been put forward by the three abovementioned creditor groups – against the company's expectations and despite repeated appeals."
It also repeated its assertion that the "greatest possible preservation of value for all of the company's stakeholders" was a "consensual finding of a restructuring concept".
The management said it would now have to examine "carefully whether the positive going concern forecast for IVG Immobilien can be upheld".
That means the holding company might have to be dissolved.
"No impact is expected on the operating business units," IVG said, adding that business operations would continue as usual during the restructuring process.
The failure to hammer out a joint refinancing plan also means shareholders will have nothing to vote on at the annual general meeting scheduled for 12 September.
With the news of the setback on Tuesday, IVG shares fell by 38% to just €0.15.