GZO AG: Creditors Request Bondholder Meeting to Rescue Wetzikon Hospital

Wetzikon, 18 July 2024 – The GZO Creditor Group has called for a bondholders' meeting to address the financial difficulties of Wetzikon Hospital. The creditors represent a CHF 170 million bond that defaulted in June 2024.

The hospital entered into a provisional composition moratorium in April 2024. The creditors attribute the financial distress to refinancing issues, not operational performance, which remains strong. They propose extending the bond maturity to June 2027 with a gradual coupon increase to 4.875% by 2027.

This proposal, if accepted, aims to allow GZO AG to restructure and avoid bankruptcy. The creditors have engaged in dialogue with the Board and expect concrete restructuring plans. Potential solutions include new equity, project resizing, and M&A opportunities.

Municipal shareholders have shown willingness to provide additional capital, and discussions with the cantonal health department have resumed. The goal is to find the best outcome for all stakeholders and ensure the continued operation of Wetzikon Hospital.