Creditors contesting Adler Group SA’s €6 billion ($6.6 billion) debt restructuring were denied permission to appeal, helping the embattled real estate firm move ahead with the plan.
(Bloomberg) — Creditors contesting Adler Group SA’s €6 billion ($6.6 billion) debt restructuring were denied permission to appeal, helping the embattled real estate firm move ahead with the plan.
A judge at the High Court in London said Tuesday the tribunal wasn’t convinced by any of the reasons for permission to appeal.
The decision follows a ruling at the same court last week allowing Adler to extend maturities of bonds due next year and borrow around €900 million, despite opposition from some of its creditors including DWS Group and Strategic Value Partners. That decision came just as Adler was set to default on debt payments due later this month, which it said would have led to an insolvency filing.
Stuck with notes maturing in 2029, lawyers for opposing creditors, including Carval Investors and Attestor Capital, said the plan benefits shareholders and investors in shorter-dated bonds. Seeking permission to appeal, their lawyer said the court should have considered possibilities of a fairer alternative plan.
That would be “wholly unworkable” and the company has already started the process to receive fresh funds, Adler’s lawyer said during a hearing on Tuesday.
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