Creditors and shareholders in IVG Immobilien have approved an insolvency plan for the beleaguered German real estate company.

Creditors approved the plan with a total of 99.47% of votes, while shareholders approved it with 56.93% of votes.

The plan includes a debt/equity swap taking IVG off the stock market.

In total, the company has €3.2bn in debt to restructure, and, according to the draft, an insolvency ratio of at least 60% must be paid to non-subordinated, unsecured creditors.

“Former shareholders’ pre-emption rights have been excluded for the capital increases planned after a capital reduction to zero,” IVG said, while “no provision has been agreed in the insolvency plan for subordinated creditors”.

Should the court approve the plan, the implementation of the capital measures is planned for mid-2014.

IVG would then expect to be able to lift insolvency proceedings by year-end.

Wolfgang Schäfers, the board member at IVG in charge of drafting the insolvency plan, resigned two weeks ago.

In a letter to the supervisory board, he explained that laying the foundations for the recovery of the company had been what he wanted to achieve before leaving.

Meanwhile, IVG has sold its retail fund business to Deutsche Fonds Holding.

The Private Funds Management arm, with around €2.7bn in assets under management, was sold for an undisclosed sum and is still subject to approval by the cartel authorities.

With the takeover, Deutsche Fonds Holding has increased its fund assets under management to €5.6bn, the company said.