Latham & Watkins Advises ACCENTRO Real Estate AG on Comprehensive Recapitalization via German StaRUG

Latham & Watkins represented ACCENTRO Real Estate AG in a comprehensive recapitalization implemented under the German Corporate Stabilization and Restructuring Act (StaRUG). The transaction effected a profound financial restructuring of the company's two senior secured notes, the issuance of new super senior notes, a reorganization of the shareholder structure and a reconstitution of the company's corporate governance. To implement the recapitalization, ACCENTRO conducted a StaRUG proceeding at the Berlin (Charlottenburg) District Court and negotiated primarily with an ad-hoc group of noteholders holding a majority of the notes and providing new financing. Under the restructuring plan the senior notes were substantially reduced and a significant portion of the liabilities was subordinated through a qualified subordination, easing the company's liabilities. Major noteholders injected new capital in exchange for newly issued super senior notes; those funds were used, among other purposes, to repay certain bridge notes previously subscribed by the ad-hoc group to provide short-term financing. For the first time in Germany the StaRUG plan was used to avoid a complete capital reduction to zero: while a capital reduction was carried out, existing shareholders retained a limited shareholding. A capital increase was effected excluding existing shareholders' subscription rights, and the restructuring court substituted for shareholder approval. The existing supervisory board was dismissed and replaced. The successful completion of the recapitalization positions ACCENTRO Real Estate AG to benefit from a potential recovery in the challenging German real estate market. Latham & Watkins represented ACCENTRO Real Estate AG with a team composed by: led by Daniel Splittgerber, Frankfurt restructuring partner; Hamburg partner Frank Grell; associates Marcel Endrich, Jannik Geiter and Leo Stelz. Capital markets advice was provided by Frankfurt partners Jan Penselin and Alexander Lentz, counsel Camilla Kehler-Weiss, and associates Laura Neumann, Tobias Müller and Alexandre Maturana. Corporate/M&A advice was provided by Hamburg partner Dirk Kocher with associate Steffen Augschill. Tax advice was provided by Hamburg partner Tobias Klass with counsel Daniel Hiemer. Litigation advice was provided by Hamburg partner Stefan Patzer with associate Marco Grotenrath. Banking & private credit matters were handled by associates Anna-Maria Kuckerz and Verena Birke.

Latham & Watkins Advises ACCENTRO Real Estate AG on Comprehensive Recapitalization via German StaRUG

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