Schutzgemeinschaft der Kapitalanleger e.V.
Schutzgemeinschaft der Kapitalanleger e.V.: SdK represents bondholders at the bondholders’ meeting of paragon GmbH & Co. KGaA on 10th of March 2022
DGAP-News: Schutzgemeinschaft der Kapitalanleger e.V.
/ Key word(s): Bond/Capital Reorganisation
SdK represents bondholders at the bondholders’ meeting of paragon GmbH & Co. KGaA on 10th of March 2022
After the quorum required for the resolution on the extension of the 2017/2022 bond of paragon GmbH & Co. KGaA (ISIN ISIN / WKN A2GSB8) was not reached in the vote without a meeting in February 2022, the company has now invited to a second bondholders’ meeting. This will take place on 10th of March 2022 in Delbrück in person. The agenda includes the company’s initially proposed extension of the term and the election of a joint representative of the bondholders. SdK, a German association for the protection of investors rights, and several institutional bondholders, who together represent more than 25% of the outstanding bond value, recently spoke out against the company’s proposed extension of the redemption date for further five years without compensation and informed the company, which conditions must be met in order to be able to agree to an extension of the maturity date of the bond. These conditions include a significantly higher, market-standard interest rate on the bond, an extension with similar conditions of the bond issued by the company under Swiss law (ISIN CH0419041105 / WKN A2TR8X) and the introduction of certain bond conditions and covenants, for example that no further senior or pari passu financial liabilities may be taken on. A maturity extension is not likely to find a majority if these conditions are not considered and negotiated in good faith by the company. In the view of the bondholders group including SdK a term extension without further guarantees in favor of the bondholders would significantly deteriorate the risk profile of the bond, since a mid double-digit million euro amount would flow to the bondholders under Swiss law in the next two years. The SdK calls on all bondholders to join this meeting and vote. For all bondholders who do not wish to or cannot attend the bondholders’ meeting themselves, the SdK offers free proxy voting by a lawyer. A corresponding proxy form and information on proxy voting can be found at www.sdk.org/paragon. We are available for inquiries at info@sdk.org or at +49 89 2020 8460. Munich, February 24, 2022
24.02.2022 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |