Milbank LLP advised the Ad-Hoc Committee of the bondholders on the comprehensive financial restructuring of Adler Group. This includes the extension of the maturity of the existing senior financing (1-Lien financing) until December 2028, the redemption of the existing senior subordinated bonds (1.5-Lien bonds) with new financing having a maturity until December 2029, and the extension of the existing subordinated bonds (2-Lien bonds) in the amount of EUR 700 million until January 2030.
To strengthen Adler Group's equity base, the remaining amount of the existing 2-Lien bonds of approximately €2.3 billion was converted into subordinated perpetual notes. In addition, Adler Group's liquidity was strengthened by a new credit line of up to €100 million and the option to retain proceeds from sales of up to €250 million. As a result of this financial restructuring, the holders of the 2-Lien bonds have acquired a total of 75 percent of the voting rights in Adler Group.
Adler Group S.A. is a Luxembourg-based real estate holding company with more than 500 subsidiaries, mainly operating in Germany. It specializes in the management and development of high-yield multi-family residential properties.
The Milbank team advised the Adler Group bondholders' ad hoc committee on the restructuring, finance and antitrust aspects of the transaction and was led by partners Yushan Ng (Restructuring, London), Sarah Levin (Restructuring, London) and Mathias Eisen (Restructuring, Frankfurt). The Milbank team also included partner Tom Canning (Litigation, London), Special Counsel Nico Feuerstein (Restructuring Munich) and Robert Kastl (Restructuring, Frankfurt) and associates Justine Erickson (Restructuring, London) and Vasiliki Katsarou (Litigation, London).
The Milbank team worked closely with teams of Hengeler Mueller, led by Martin Tasma, Johannes Tieves and Arvid Morawe, Loyens & Loeff, led by Michael Scott, and Houlihan Lokey led by Manuel Martinez-Fidalgo and Ulrich Graebner.
