VERIANOS SE Files for Insolvency Proceedings Over SMC 2 GmbH & Co. KG

On September 18, 2024, VERIANOS SE announced that the general partner of SMC 2 GmbH & Co. KG has decided to file for insolvency proceedings at the local court in Cologne. This decision comes as a significant development for the company's stakeholders and investors.

SMC 2 GmbH & Co. KG's limited partner shares are pledged as collateral for VERIANOS SE's 8% bond (ISIN: DE000A30VG50). The insolvency proceedings may lead to these shares suffering a considerable discount or becoming worthless, especially if an early sale of the investment occurs. Other collateral provided will not compensate for this potential loss.

Currently, there are no insolvency grounds for the other companies whose limited partnership interests are also pledged as collateral for VERIANOS SE's 8% bond. However, discussions among shareholders may lead to replacing the management company VERIANOS Capital Partners GmbH, which could negatively affect the collateral's value.