Corestate: Creditors' meeting approves bond restructuring plan and lays foundation for company's going concern

• Bond investors vote with large majority for comprehensive restructuring concept
• Significant reduction in financial debt
• Broadening of equity base through debt-to-equity swap
• Resilient balance sheet structure enables operational restart and repositioning

Luxembourg, 28 November 2022 - Today's creditors' meetings of Corestate Capital Holding S.A. ("Corestate") approved the bond investors' proposal with a large majority, thus clearing the way for a sustainable restructuring of the company. In the event of the successful implementation of the individual restructuring measures, the Management Board now assumes that a continuation of the Group as a going concern can be financially secured.

"We have reached an important milestone and are pleased with the result achieved, which secures jobs and enables stability. The entire group has been given a concrete perspective with today's concept of measures for debt reduction. Above all, our customers and employees now have planning security and reliability again. This is all the more important so that we can fully focus operationally on the challenges and opportunities in the demanding market environment," comments Stavros Efremidis, CEO of Corestate, on the bond investors' decision.

The restructuring concept initially foresees a deferral of the maturing convertible bond until April 2023. This forms a stable basis for the implementation of further capital measures to significantly reduce debt and strengthen equity through a debt-to-equity swap. Other important key points of the resolution are the addition of a Chief Restructuring Officer (CRO) to the Group Management Board and the appointment of two representatives of the bond investors to the Supervisory Board.

The overall concept is subject to the usual regulatory approvals and conditions precedent. For example, in order to implement the capital increase, the Corestate Management Board must first be authorized in accordance with the Extraordinary General Meeting on 20 December 2022. In addition to the pro rata conversion of the 200 million Euro convertible bond and the 300 million Euro bond into equity, the concept provides for the issuance of two new notes with a total volume of up to 125 million Euro and a planned maturity until the end of December 2026. In the course of this consistent recapitalization, the balance sheet structure and gearing of the company will be put back on a stable foundation.

The transaction is being legally advised by the law firms Weil, Gotshal & Manges LLP and Milbank LLP. Rothschild & Co. and Houlihan Lokey acted as financial advisors.
 

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About Corestate Capital Holding S.A. (Corestate)

Corestate is an investment manager and co-investor with € 17.3 billion in assets under management in the core business. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanization, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At Corestate, all concepts are supported with ESG expertise that is unique to the industry. With more than 400 experts, Corestate offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. Corestate is listed on the Frankfurt Stock Exchange and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Luxembourg, Frankfurt, Munich, Zurich, Paris and Madrid. Please visit www.corestate-capital.com for further information.

Forward-looking statement

This press release may contain certain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial position, development or performance of the Company and the estimates given here. These factors include those described in published reports. These reports are available on our website www.corestate-capital.com. The Company assumes no obligation whatsoever to update these forward-looking statements or to conform them to future events or developments. No inappropriate significance should be attached to forward-looking statements, which apply only to the date of this communication.