The German Adler Group rents out thousands of apartments in Germany and is heavily indebted. A UK court has now allowed the Group to restructure its debt by billions despite opposition from some creditors. Among other things, the Group can take on one billion euros in new debt.
The plan involves changes to the terms of bonds due between 2024 and 2029. Among other things, the bonds maturing next year will be extended by one year. The Adler Group has bonds worth around €3.2 billion on the market; with loans and another financing, the debt amounts to more than six billion euros.
Bonds will also be transferred to a new English subsidiary to implement the restructuring plan. If the program does not succeed, Adler Group could end up in financial distress, a representative of the British subsidiary told a court hearing.
The investor has been in crisis since the fall of 2021. After allegations of fraud by short sellers, Adler commissioned the auditing firm KPMG with an expert opinion. Not only did the specialist opinion do little to forgive the company, it also showed how deeply it was involved in dubious financial operations. KPMG terminated Adler’s cooperation. Since then, Adler Group has been unable to find an auditor willing to certify its annual financial statements.
The Adler Group rents out around 26,000 apartments in Germany. The company owns, among others, the Holster-Areal in Hamburg, the Steglitzer Kreisel in Berlin, and large properties in Düsseldorf, Cologne, Frankfurt, Offenbach, Leipzig, and other major German cities.