In view of the financial crisis, EVAN Group plc launches a restructuring project in accordance with the provisions of StaRUG

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DGAP-News: EVAN Group plc. / Keyword(s): Leap
EVAN Group plc. : In view of the financial crisis, EVAN Group plc launches a restructuring project in accordance with the provisions of StaRUG
06.07.2022 / 11:17
The issuer is solely responsible for the content of this announcement.

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In view of the financial crisis, EVAN Group plc launches a restructuring project in accordance with the provisions of StaRUG

  • Business financial crisis

  • Notification of StaRUG Proceedings Filed in Restructuring Court

  • Extensive measures planned for the restructuring of the EVAN Bond

Valletta, 6 July 2022 – EVAN Group plc, Malta, as issuer of the 6.0% 2017/2022 bond (ISIN: DE000A19L426 / WKN: A19L42) (“EVAN link“), is going through a financial crisis and has today filed a restructuring plan notification in accordance with the German Business Stabilization and Restructuring Act (Unternehmensstabilisierungs- und -restrukturierungsgesetz – “StaRUG) at the High Court (Amtsgericht) from Dusseldorf (“Restructuring Court“) as an essential step for a restructuring of the EVAN Bond. The restructuring options under the provisions of the StaRUG were introduced by the German legislator on January 1, 2021 and allow a company to implement a so-called restructuring plan , which serves the restructuring, under the control of the restructuring court.

The financing structure of EVAN Group plc has been designed so that well before the EVAN Bond matures on July 31, 2022, all construction projects in the Group’s sub-subsidiaries should be completed and marketed and the excess proceeds were to be used to repay the EVAN Bond and pay unpaid interest.

Contrary to plans, there were considerable delays in construction. In the construction project in Berlin, the payment of a contractually agreed debtor mandate is pending. According to the debtor’s mandate, additional payments will be due, depending on the size of the buildable living space, when a building permit is granted by the city of Berlin. The EVAN Group expected payment of the debtor’s mandate well before the maturity of the EVAN bond. The construction project in Würzburg was burdened with massive construction defects, the elimination of which led to both a considerable delay in completion and an additional financial burden for the elimination of defects. These general circumstances have already necessitated significant support measures from EVAN Group plc and its subsidiaries.

The completion of the construction project in Frankfurt has been delayed in both planning and execution, and refinancing is required. Only in the event of a successful refinancing will payments be made to EVAN Group plc, which it needs to repay at least part of the EVAN bond plus interest to noteholders.

In this context, a restructuring of the EVAN Bond is necessary. EVAN Group plc therefore intends to use a restructuring plan to structure the claims of the EVAN bondholders so that the projects can be completed and commercialized. From the Company’s perspective, this will enable the Company to avoid insolvency, achieve the highest values ​​for these projects and thereby achieve the best outcome for Noteholders. To this end, the draft restructuring plan filed with the notification to the Restructuring Court provides in particular for the following measures:

  • the reduction of the total nominal value of the outstanding EVAN Bond of 22,778,000.00 euros from 15,876,266.00 euros to 6,901,734.00 euros, i.e. a reduction in the nominal value per note of the EVAN Bond from 1,000.00 euros to 303.00 euros;

  • an extension of the maturity of accrued interest receivables from bondholders until July 30, 2022 (inclusive), which will only become due five months after the legal entry into force of the restructuring plan;

  • the extension of the maturity of the EVAN Bond until July 30, 2024; and

  • the granting of a loan subscription warrant for bondholders, which must be financed by future cash inflows and the amount of which is limited to a maximum of 697.00 euros per EVAN Bond bond.

In addition and independently of this, it is expected that bondholders will be offered, subject to the legal validity of the restructuring plan, the acquisition of the bonds they hold within four months of the legal validity of the restructuring plan for a purchase price of 53% of the nominal value (corresponding to 530.00 euros per note).

The restructuring court is now expected to convene a meeting of bondholders in the near future for the purpose of appointing a common representative for all bondholders of the EVAN bond. This meeting should take place at the end of July 2022.

The restructuring tribunal will then announce a discussion and vote date on which the restructuring plan will be voted on.

Contact

EVAN Group plc

T: +49 (0) 69 94 41 80 55 // E: IR@evan-group.com

Press / Investor Relations

Andreas Framke
NewMark Finanzkommunikation GmbH
Walther-von-Cronberg-Platz 16
D-60594 Frankfurt am Main

Tel: +49 (0) 69 94 41 80 55 // Fax: +49 (0) 69 94 41 80 19
E: IR@evan-group.com

06.07.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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