ABO Energy considers initial vote a success and invites bondholders to a meeting

ABO Energy's proposals did achieve the necessary majority of votes in a ‘vote without a meeting’ among the creditors of the 2024/2029 bond (ISIN: DE000A3829F5). However, the minimum participation of 50 per cent required for a quorum was not reached. Around 38 per cent of the outstanding capital took part in the vote. ABO Energy and Dr Matthias Horbach, the notary appointed to conduct the vote without a meeting, now intend to convene an in-person creditors' meeting. The creditors are expected to vote again on the proposed amendments to the bond terms and conditions and the election and authorisation of a joint representative on Monday, 9 March, starting at 2 p.m. at the premises of the Wiesbaden Industrie- und Handelskammer (Chamber of Industry and Commerce), Wilhelmstr. 24-26. In this second round of voting, a reduced participation of 25 per cent will apply for a quorum to be reached.

“The result of the first vote is encouraging,” says Alexander Reinicke, Chief Financial Officer (CFO) responsible for corporate financing. “Bondholders have clearly recognised that their approval of the proposed resolutions is necessary to enable the upcoming restructuring of the company.” Since the ABO Energy bond is held in the portfolios of many thousands of investors, the initial minimum participation of 50 per cent was a high hurdle. In the second attempt, the chances of reaching the necessary decisions are good. “We once again ask all bondholders to participate in the creditors' meeting and accept the proposals, both in the interests of the company and in their own interests,” says Reinicke. “This will significantly improve the company's chances of restructuring and thus also its prospects of continuing to meet its payment obligations under the bond.”

The votes cast in the first vote last week will not be included in the evaluation of the upcoming vote. In order to contribute to the upcoming important decisions, investors must participate in the second and decisive vote that is now taking place and submit a new certificate from their custodian bank confirming the bonds they hold (‘special certificate with blocking notice’).

Among other things, the company proposes waiving the negative pledge contained in the bond terms and conditions. This provision currently prevents the conclusion of new guarantees, loans and sureties that are important for the continuation of ABO Energy's business. The bond terms and conditions also currently stipulate that bonds can be called if the issuer enters into negotiations with a majority of its creditors regarding debt restructuring due to financial difficulties. In order not to jeopardise the progress of negotiations on a restructuring plan, this right of termination is to be deleted. Further termination rights are to be suspended until 31 May 2026 in order to enable the conclusion of a restructuring plan. In order to facilitate negotiations and coordination in the context of the restructuring and to take into account the rights of bondholders, a joint representative is to be appointed and authorised to conclude a standstill agreement on behalf of the bondholders and to represent the interests of the bondholders in further negotiations.

With the publication of the notice of meeting in the Federal Gazette, the documents for the creditors' meeting are expected to be available in German on the website (www.aboenergy.com/anleihe) from 3 p.m. on Thursday, 19 February. In order to participate in the creditors' meeting on Monday, 9 March, timely registration with the issuer is required. As proof of share ownership, a ‘special certificate with blocking note’ issued by the custodian bank must be submitted. As an alternative to attending in person, bondholders may authorise a person of their choice or the company's proxy to vote at the meeting.