Schlote invites 2024 bondholders to vote on waiver, extension

By Marisa Wong

Los Angeles, Jan. 26 – Schlote Holding GmbH sent out an invitation on Jan. 25 to holders of its €25 million 6¾% bonds, issue 2019/2024 (ISIN: DE000A2YN256) to vote on some proposed amendments and a waiver, according to a news release.

Schlote was unable to repay the bonds as planned in November and is therefore asking bondholders for concessions in order to avoid a court-ordered restructuring solution.

Schlote cited disrupted supply chains and increased energy prices as reasons for the decline in order numbers from its customers. The group said it has assumed a sideways movement at a low level for several years. As a result, the company was unable to repay its bonds.

The issuer is asking bondholders to waive repayment of the bond in the amount of 50% of the nominal value. The company also wants bondholders to approve an extension of the maturity by nine years until Nov. 21, 2033 and agree to interest no longer being paid annually but only becoming due on the redemption date.

In addition, Marc Liebscher, who is a member of the board of SdK Schutzgemeinschaft der Kapitalanleger eV, will be appointed as joint representative of the bondholders.

The issuer is inviting the bondholders to vote without a meeting in the period from Feb. 9 to Feb. 11.

In Friday’s news release, SdK expressed its opinion that the currently proposed restructuring concept cannot be approved.

SdK believes that bondholders can just approve a haircut, if owners of Schlote make a restructuring contribution and a recovery instrument is given to bondholders, so that the company’s credit rating is strengthened and, in the event of a successful reorganization, a opportunity for recovery is given to the bondholders. Furthermore, SdK suggested that a restructuring opinion is required in advance before the approval of the bondholders in order to be able to assess the prospects of success of a restructuring.

SdK is recommending that affected bondholders organize in order to ensure the best possible protection of their interests. SdK said it is offering free proxy voting for the vote without a meeting and any further upcoming bondholder meetings that may be necessary. Affected investors can also register for a free newsletter at, which the SdK will use to keep bondholders informed of further developments.

SdK (info@sdk.org; +49 89 2020846-0; www.sdk.org/schlote) offered to answer any questions.

Schlote is a German holding company for subsidiaries that provide engineering services.

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