ESPG AG Announces Restructuring Plan Amid Financial Overhaul

On October 28, 2024, ESPG AG revealed its new reorganisation strategy in Cologne. This plan proposes a dramatic shift in the company's capital structure under the StaRUG framework. Initially, the company's share capital will be reduced to zero, leading to the removal of current shareholders. Subsequently, a capital increase to EUR 50,000 is planned with ESPG ReCap Partners SCSp (90%) and ESPG BondCo S.à r.l. (10%) set to be the new shareholders.

ReCapCo, an investment entity, is injecting EUR 11.6 million for restructuring, part of which depends on court approval. Meanwhile, BondCo, a special entity, aims to involve bondholders in ESPG's future business. Adjustments to the ESPG Bond's terms include extending its maturity to 2036.

A comparative assessment by Forvis Mazars indicates a significantly better outcome for bondholders under the restructuring than in an insolvency scenario, projecting higher recovery rates if the plan succeeds.