Corestate Capital Holding SALuxemburgCorestate Capital Holding S.A. | Verlangen einer Ergänzung der Tagesordnung zur Gläubigerversammlung der EUR 200.000.000 Schuldverschreibungen 2017/2022 am 28. November 2022 (ISIN DE000A19SPK4)Sehr geehrte Damen und Herren, wir nehmen Bezug auf die Einladung der Corestate Capital Holding S.A. (nachfolgend „Emittentin„) zu einer Gläubigerversammlung der Inhaberinnen und Inhaber der von der Emittentin begebenen EUR 200.000.000 Wandelschuldverschreibungen 2017/2022 (nachfolgend „2022 Wandelschuldverschreibungen„) am 28. November 2022 (nachfolgend „Gläubigerversammlung„). Wir, Milbank LLP, vertreten Inhaber der 2022 Wandelschuldverschreibungen, die zusammen 2022 Wandelschuldverschreibungen im Nennbetrag von insgesamt EUR 68.500.000 halten, (nachfolgend „Antragsteller„). Die Antragsteller repräsentieren zum Datum dieses Schreibens rund 36,4% des ausstehenden Gesamtnennbetrags der 2022 Wandelschuldverschreibungen. Schuldverschreibungen, hinsichtlich derer gemäß § 6 SchVG das Stimmrecht ruht, wurden für Zwecke der Bestimmung des von den Antragstellern repräsentierten Gesamtnennbetrags der 2022 Wandelschuldverschreibungen außer Acht gelassen; dies gilt für 2022 Wandelschuldverschreibungen im Gesamtnennwert von EUR 11.600.000, die laut der Einladung zur Gläubigerversammlung von der Emittentin gehalten werden. Nachweise der Inhaberschaft der Antragsteller an den 2022 Wandelschuldverschreibungen sind diesem Schreiben in Anlage 1 (Inhaberschaftsnachweise) beigefügt. Nachweise unserer ordnungsgemäßen Bevollmächtigung durch die Antragsteller, die wir darüber hinaus anwaltlich versichern, sind diesem Schreiben in Anlage 2 (Vertretungsnachweise) beigefügt. Die Antragsteller sind Mitglieder des Ad-hoc Komitees der Anleihegläubiger der 2022 Wandelschuldverschreibungen und der von der Emittentin begebenen EUR 300.000.000 Schuldverschreibungen 2018/2023 (nachfolgend „2023 Schuldverschreibungen“ und zusammen mit den 2022 Wandelschuldverschreibungen, nachfolgend „Schuldverschreibungen„) (nachfolgend „Ad-hoc Komitee„). Das Ad-hoc Komitee repräsentiert zum Datum dieses Schreibens rund 50,5% des ausstehenden Gesamtnennbetrags der 2022 Wandelschuldverschreibungen und rund 74,4% des ausstehenden Gesamtnennbetrags der 2023 Schuldverschreibungen. Schuldverschreibungen, hinsichtlich derer gemäß § 6 SchVG das Stimmrecht ruht, wurden für Zwecke der Bestimmung des von dem Ad-hoc Komitee repräsentierten Gesamtnennbetrags außer Acht gelassen (siehe oben). Zur Klarstellung weisen wir darauf hin, dass die hierin gestellten Anträge zwar ausschließlich von den Antragstellern gestellt werden, die hierin gestellten Anträge allerdings inhaltlich seitens des gesamten Ad-hoc Komitees vollumfänglich befürwortet und unterstützt werden. A. Auflage zur Bekanntmachung dieses Schreibens Im Namen sämtlicher Antragsteller verlangen wir hiermit gemäß § 13 Abs. 3 SchVG, dass die Emittentin dieses Schreiben in seinem vollständigen Wortlaut ohne die Anlagen 1 (Inhaberschaftsnachweise) und 2 (Vertretungsnachweise) bekannt macht. Die Anlagen 1 (Inhaberschaftsnachweise) und 2 (Vertretungsnachweise) sind von der Emittentin vertraulich zu behandeln und dürfen von dieser nicht bekannt gemacht werden. Sollte die Veröffentlichung gemäß § 13 Abs. 3 SchVG nicht rechtzeitig vorgenommen werden, verlangen wir hiermit die Veröffentlichung als Gegenantrag gemäß § 13 Abs. 4 SchVG (insbesondere zu Tagesordnungspunkt B.V., hilfsweise zu Tagesordnungspunkt B.III und äußerst hilfsweise zu Tagesordnungspunkt B.IV.) im Internet unter der Adresse der Emittentin. Die vorstehenden Auflagen gelten entsprechend. B. Hintergrund Das Ad-hoc Komitee hat in den vergangenen Monaten Diskussionen mit der Emittentin hinsichtlich einer Restrukturierung der Schuldverschreibungen geführt. Die in der Einladung zur Gläubigerversammlung enthaltenen Beschlussvorschläge der Emittentin entsprechen aus Sicht der Antragsteller nicht den Interessen der Inhaber der 2022 Wandelschuldverschreibungen. Die Antragsteller verlangen deshalb die Ergänzung der Tagesordnung für die Gläubigerversammlung wie unter Abschnitt C. (Verlangen nach Ergänzung der Tagesordnung) dargelegt. Das Ergänzungsverlangen wird unter Abschnitt D (Begründung des Ergänzungsverlangens) näher begründet. Es ist festzuhalten, dass die Emittentin die Einladung zur Gläubigerversammlung nicht mit dem Ad-hoc Komitee bzw. den Antragstellern abgestimmt hat und sich diese die in der Einladung zur Gläubigerversammlung enthaltenen Ausführungen der Emittentin nicht zu eigen machen. C. Verlangen nach Ergänzung der Tagesordnung Im Namen sämtlicher Antragsteller verlangen wir hiermit gemäß § 13 Abs. 3 SchVG, dass die Emittentin folgenden Gegenstand zur Beschlussfassung in der Gläubigerversammlung gemäß nachstehender Unterabschnitte I (Beschlussgegenstand) bis einschließlich III (Aufschiebend bedingte Vollziehbarkeit des zustimmenden Beschlusses über den Zusätzlichen Beschlussgegenstand) bekannt macht:
Es soll folgender Beschluss (nachfolgend „Zusätzlicher Beschlussgegenstand„) gefasst werden:
Der Zusätzliche Beschlussgegenstand stellt einen einheitlichen Beschlussvorschlag dar, über den nur einheitlich durch die Anleihegläubiger in der Gläubigerversammlung abgestimmt werden kann. Die Emittentin kann den Zusätzlichen Beschlussgegenstand nach der Beschlussfassung durch die Anleihegläubiger in der Gläubigerversammlung nur einheitlich und im Ganzen annehmen.
Die Emittentin darf den Beschluss der Anleihegläubiger über den Zusätzlichen Beschlussgegenstand nur vollziehen, wenn und sobald die Aufschiebende Bedingung (wie in Ziffer 1.(ii) des Zusätzlichen Beschlussgegenstands definiert) entsprechend Ziffer 1.(ii) des Zusätzlichen Beschlussgegenstands eingetreten ist. Wenn der Eintritt der Aufschiebende Bedingung (wie in Ziffer 1.(ii) des Zusätzlichen Beschlussgegenstands definiert) entsprechend Ziffer 1.(ii) des Zusätzlichen Beschlussgegenstands ausgeschlossen ist, wird die Zustimmung der Emittentin zum Zusätzlichen Beschlussgegenstand gegenstandslos und kann und darf von der Emittentin nicht mehr vollzogen werden. Tritt die Aufschiebende Bedingung (wie in Ziffer 1.(ii) des Zusätzlichen Beschlussgegenstands definiert) ein, soll die Emittentin dies unverzüglich gemäß § 14 (Bekanntmachungen) der Anleihebedingungen der 2022 Wandelschuldverschreibungen veröffentlichen. Gleiches gilt, wenn der Eintritt der Aufschiebende Bedingung (wie in Ziffer 1.(ii) des Zusätzlichen Beschlussgegenstands definiert) entsprechend Ziffer 1.(ii) des Zusätzlichen Beschlussgegenstands ausgeschlossen ist. D. Begründung des Ergänzungsverlangens
Die Antragsteller lehnen den von der sogenannten „Investor Group“ vorgelegten Finanzierungsvorschlag ab und beabsichtigen deshalb, in der Gläubigerversammlung gegen den von der Emittentin zur Beschlussfassung vorgelegten Hauptantrag stimmen. Das Ad-hoc Komitee hat das von der Emittentin als Hauptantrag zur Abstimmung vorgelegte sog. „Restrukturierungskonzept“ gemäß „Term Sheet Kapitalerhöhungsvorschlag“ bereits unmittelbar nach der Vorstellung dessen kommerzieller Eckpunkte nachdrücklich abgelehnt. Es beinhaltet keine angemessene und gerechte Verteilung der Sanierungsbeiträge und der durch die Sanierungsbeiträge geschaffenen Werte. Bei Annahme dieses Vorschlags müssten die Inhaber der 2022 Wandelschuldverschreibungen auf Forderungen in Höhe von insgesamt EUR 149,8 Mio., mithin 79,5% des Gesamtnennbetrags der 2022 Wandelschuldverschreibungen, und die Inhaber der 2023 Schuldverschreibungen auf Forderungen in Höhe von insgesamt EUR 238,6 Mio., mithin 79,5%% des Gesamtnennbetrags der 2023 Schuldverschreibungen ohne angemessene Kompensation verzichten (2022 Wandelschuldverschreibungen im Gesamtnennwert von EUR 11.600.000, die laut der Einladung zur Gläubigerversammlung von der Emittentin gehalten werden, wurden für die Zwecke dieser Berechnung außer Acht gelassen). Am vorhandenen Wert der Emittentin, der insbesondere auch durch die Finanzierungen in Form der Schuldverschreibungen geschaffenen wurde, sollen die Schuldverschreibungsinhaber nur in Form des verbleibenden Nennbetrags der Schuldverschreibungen in Höhe von insgesamt EUR 100 Mio. und in Form des sog. „Upside Sharings“ hinsichtlich 50% der Nettoerlöse aus bestimmten, im Business Plan der Emittentin nicht vorgesehenen Ereignissen partizipieren. An einer zukünftigen, durch den Forderungsverzicht ermöglichten Wertaufholung sollen die Schuldverschreibungsgläubiger hingegen ansonsten nicht mehr partizipieren. Den Investoren würden aufgrund deren Eigenkapitalbeteiligung in Höhe von 76,1% der weit überwiegende Teil dieser Werte zugutekommen, obwohl diese nur eine Kapitalzufuhr in Höhe von EUR 45 Mio. leisten würden. Gemäß einer indikativen Analyse des Financial Advisers des Ad-hoc Komitees auf Basis der von der Emittentin zur Verfügung gestellten Informationen bestehen für die Inhaber der Schuldverschreibungen aus den von der Emittentin zur Abstimmung gestellten Konzepte zusammengefasst konkret die in Unterabschnitten 1 (Indikative Erlösquote gemäß „Term Sheet Kapitalerhöhungsvorschlag“)) und 2 (Indikative Erlösquote gemäß „Term Sheet Kapitalerhöhungsvorschlag“) dargestellten wirtschaftlichen Auswirkungen. 1 1 Diese indikative Analyse stellt keine Finanz- oder Anlageberatung jeglicher Art oder Empfehlung einer bestimmten Vorgehensweise dar und kann jeweils auch nicht als solche ausgelegt werden. Diese indikative Analyse basiert auch auf zukunftsgerichteten Informationen und Einschätzungen und Annahmen. Solche Informationen, Einschätzungen und Annahmen unterliegen verschiedenen, nicht prognostizierbaren Ungewissheiten, die dazu führen können, dass die tatsächlichen Ergebnisse und Entwicklungen wesentlich von jenen abweichen, die in den zukunftsgerichteten Informationen, Einschätzungen und Annahmen zum Ausdruck gebracht, impliziert oder prognostiziert werden.
* Ansatz von jeweils 50% als “Upside Sharing” gemäß “Term Sheet Kapitalerhöhungsvorschlag”.
* Ansatz von jeweils 100% gemäß “Term Sheet AHC Proposal”.
Die Antragsteller lehnen die Bestellung der One Square Advisory Services Sàrl als gemeinsamen Vertreter aller Anleihegläubiger ab und beabsichtigen deshalb, in der Gläubigerversammlung gegen den von der Emittentin zur Beschlussfassung vorgelegten ersten Hilfsantrag stimmen. Die Antragsteller beabsichtigen weiterhin die Umsetzung des vom Ad-hoc Komitee vorgelegten Finanzierungsvorschlags (vgl. Unterabschnitt IV (Inhalt des Zusätzlichen Beschlussgegenstands). Für dessen Umsetzung beabsichtigen die Antragsteller die Bestellung eines gemeinsamen Vertreters aller Anleihegläubiger, nachdem sich die Emittentin und das Ad-hoc Komitee auf die Umsetzung des Finanzierungsvorschlags des Ad-hoc Komitees geeinigt haben. Allerdings genießt One Square Advisory Services Sàrl nicht das Vertrauen der Antragsteller und die Antragsteller beabsichtigen deshalb gegen die Bestellung von One Square Advisory Services Sàrl zum gemeinsamen Vertreter der Anleiheinhaber stimmen. Auch die von der Emittentin zur Abstimmung vorgelegte Ermächtigung und Bevollmächtigung des gemeinsamen Vertreters sind aus Sicht der Antragsteller in Teilen zu weitgehend und zu unkonkret. So soll der gemeinsame Vertreter etwa jeweils mit bindender Wirkung für und alle Anleihegläubiger angewiesen, ermächtigt und bevollmächtigt werden, das Finanzierungskonzept des Ad-hoc Komitees auf Basis der in der Einladung zur Gläubigerversammlung „[…] beschriebenen Grundzüge und Eckpunkte final zu verhandeln […]“, „[…] nach eigenem Ermessen über die Umsetzung des Alternativen Restrukturierungskonzepts zu entscheiden […]“ und unter bestimmten Voraussetzungen „[…] zum einen Änderungen zu den Bedingungen des Alternativen Restrukturierungskonzepts wie im Term Sheet AHC Proposal dargelegt und zum anderen einem von den Grundzügen und Eckpunkten abweichenden Konzept für die Restrukturierung der Wandelschuldverschreibungen zuzustimmen, beides insbesondere sofern dies eine beschleunigte Restrukturierung ermöglicht oder […]“. Der gemeinsame Vertreter könnte demgemäß umfassend in die Rechte der Inhaber der 2022 Wandelschuldverschreibungen eingreifen. Solch weitreichende Befugnisse sind unüblich und weder für die Umsetzung des Finanzierungsvorschlags des Ad-hoc Komitees erforderlich noch aus Sicht der Inhaber der 2022 Wandelschuldverschreibungen interessengerecht. Da die Emittentin nur eine einheitliche Beschlussfassung über die Annahme des Finanzierungsvorschlags des Ad-hoc Komitees und der Bestellung von One Square Advisory Services Sàrl als gemeinsamen Vertreter aller Anleihegläubiger unter Einräumung zu weitgehender und unkonkreter Ermächtigungen und Bevollmächtigungen vorgesehen hat (vgl. Unterabschnitt 4.4 des Abschnitts B.IV (ERSTER Hilfsantrag: Beschlussvorlage für die Restrukturierung der Wandelschuldverschreibung 2022 (AHC Proposal)) der Einladung zur Gläubigerversammlung), beabsichtigen die Antragsteller gegen den ersten Hilfsantrag zu stimmen.
Die Antragsteller lehnen die Verlängerung der Endfälligkeit der 2022 Wandelschuldverschreibungen ohne vorherige Einigung zwischen der Emittentin, dem Ad-hoc Komitee und den maßgeblichen Ankeraktionäre der Emittentin auf die Umsetzung eines Finanzierungskonzepts ab und beabsichtigen deshalb gegen den von der Emittentin zur Beschlussfassung vorgelegten zweiten Hilfsantrag zu stimmen.
Die Antragsteller sind zur Ermöglichung der Umsetzung eines Finanzierungskonzepts bereit, die Fälligkeit der 2022 Wandelschuldverschreibungen zu verlängern und die am 28. November 2022 fällig werdenden Zinsen zu stunden, wenn und sobald sich die Emittentin, die Ankeraktionäre und die Antragsteller auf ein Finanzierungskonzept geeinigt haben. Eine solche Einigung soll in marktüblicher Weise in Form eines sogenannten lock-up agreements dokumentiert werden. Eine unterschriftsreife Fassung einer solchen Vereinbarung ist in Anlage 3 (Lock-up Vereinbarung) beigefügt (nachfolgend „Lock-up Vereinbarung„). Die Antragsteller sind bereit, die Lock-up Vereinbarung kurzfristig abzuschließen. Im Rahmen der Lock-up Vereinbarung sollen sich die Emittentin und die Mitglieder des Ad-hoc Komitees unter anderem zur möglichst zeitnahen Umsetzung des Finanzierungsvorschlags des Ad-hoc Komitees verpflichten. Die wesentlichen Bedingungen dieses Finanzierungsvorschlags sind in einem Term Sheet als Anlage zur Lock-up Vereinbarung festgehalten (nachfolgend „Lock-up Term Sheet„). Das Lock-up Term Sheet entspricht im Wesentlichen dem in der Einladung zur Gläubigerversammlung referenzierten „Term Sheet AHC Proposal“, das zwischenzeitlich finalisiert wurde und zusätzliche Regelungen zu der von der Emittentin geforderten Brückenfinanzierung enthält. Eine Vergleichsfassung zwischen dem „Term Sheet AHC Proposal“ und dem Lock-up Term Sheet ist in Anlage 4 (Vergleichsfassung Term Sheet) beigefügt. Als angepasstes Endfälligkeitsdatum und Stundungszeitraum wurde der 15. April 2023 ausgewählt, um einen Gleichlauf mit der Endfälligkeit der 2023 Schuldverschreibungen herzustellen. Den Antragstellern ist bewusst, dass der Finanzierungsvorschlag des Ad-hoc Komitees gegebenenfalls nicht bis zum 15. April 2023 vollständig umgesetzt werden kann. Die Antragsteller sind deshalb bereit, sich im Rahmen der Lock-up Vereinbarung zur Zustimmung zu einer etwaig erforderlich werdenden weiteren Verlängerung der Endfälligkeit der 2022 Wandelschuldverschreibungen zu verpflichten, um die vollständige Umsetzung des Finanzierungskonzepts des Ad-hoc Komitees zu ermöglichen, sofern die konstruktive Mitwirkung der Emittentin erfolgt. Die Annahme des Finanzierungskonzepts des Ad-hoc Komitees in Form des Lock-up Term Sheets liegt im besten Interesse der Emittentin und aller ihrer Stakeholder. Wenn es von der Emittentin umgesetzt wird, verhindert es deren Insolvenz und ermöglicht eine nachhaltige Sanierung der Emittentin. Insbesondere beinhaltet es den erforderlichen Schuldenabbau durch einen signifikanten Forderungsverzicht, den das Ad-hoc Komitee bereit wäre zu akzeptieren, und die von der Emittentin für erforderlich gehaltene Liquiditätszuführung, einschließlich der Brückenfinanzierung. Das Finanzierungskonzept des Ad-hoc Komitees ist auch innerhalb eines angemessenen Zeitraums umsetzbar. Es trägt allen potenziellen rechtlichen und praktischen Umsetzungshürden Rechnung. Gesetzliche Umsetzungsvoraussetzungen, die jedem Kontrollwechsel in Bezug auf die gegenwärtigen Inhaberstruktur immanent sind, sollten auf Basis der Auskunft aufsichtsrechtlicher Experten in der jeweiligen Jurisdiktion innerhalb von fünf Monaten nach Abschluss der Lock-up Vereinbarung abgeschlossen werden können. Darüber hinaus stellt das Finanzierungskonzept des Ad-hoc Komitees eine gerechte und angemessene Lösung für alle Beteiligten dar. Es trägt insbesondere auch den Interessen der bestehenden Aktionäre der Emittentin Rechnung, indem es diesen ermöglicht, ohne Leistung eines Finanzierungsbeitrags rund 19% des Eigenkapitals der Emittentin zu behalten. Die Umsetzung des Finanzierungskonzepts des Ad-hoc Komitees bedarf auf Grund der in den für den 3. November 2022 und den 22. November 2022 terminierten Hauptversammlungen nicht beschlossenen Schaffung eines erforderlichen genehmigten Kapitals der Mitwirkung der Hauptversammlung der Emittentin. Die Antragsteller erwarten, dass die Emittentin eine weitere Hauptversammlung für die Schaffung des erforderlichen genehmigten Kapitals unverzüglich einberuft und die Hauptversammlung bis spätestens 31. Dezember 2022 ihre Zustimmung erteilt, damit das Finanzierungskonzept des Ad-hoc Komitees im Interesse der der Emittentin und aller ihrer Stakeholder umgesetzt werden kann. Der Zusätzliche Beschlussgegenstand kann von der Gläubigerversammlung gemäß § 5 Abs. 4 S. 2 SchVG mit einer qualifizierten Mehrheit von mindestens 75 Prozent der teilnehmenden Stimmrechte beschlossen werden. ANLAGE 1Inhaberschaftsnachweise[nicht für die Veröffentlichung bestimmt / siehe separates Schreiben vom heutigen Tage]ANLAGE 2Vertretungsnachweise[nicht für die Veröffentlichung bestimmt / siehe separates Schreiben vom heutigen Tage]ANLAGE 3Lock-up VereinbarungDRAFT___________________________________
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| 1. |
Definitions and Interpretation |
| 2. |
Effectiveness of this Agreement |
| 3. |
Supporting and Implementing the Restructuring |
| 4. |
Accessions |
| 5. |
Transfers |
| 6. |
Termination |
| 7. |
Amendments and Waivers |
| 8. |
Representations |
| 9. |
Confidentiality |
| 10. |
Publicity |
| 11. |
Information relating to Locked-up Debt |
| 12. |
Information Agent |
| 13. |
Consenting Noteholders and Ad Hoc Group |
| 14. |
Separate Rights |
| 15. |
Specific Performance |
| 16. |
Notices |
| 17. |
Partial Invalidity |
| 18. |
Remedies and Waivers |
| 19. |
Reservation of Rights |
| 20. |
Costs and Expenses |
| 21. |
Counterparts |
| 22. |
Obligors Agent |
| 23. |
Entire Agreement |
| 24. |
Governing Law |
| 25. |
Enforcement |
| 26. |
Service of Process |
| Schedule 1 | The Original Consenting Noteholders |
| Schedule 2 | Restructuring Term Sheet |
| Schedule 3 | Form of Noteholder Accession Letter |
| Schedule 4 | Form of Company Party Accession Letter |
| Schedule 5 | Form of Information Agent Accession Letter |
| Schedule 6 | Form of Shareholder Party Accession Letter |
| Schedule 7 | Form of Transfer Certificate |
THIS AGREEMENT (this “Agreement”) is dated [●] and made amongst:
| (1) |
CORESTATE CAPITAL HOLDING S.A., a société anonyme incorporated under Luxembourg law and registered with the registre de commerce et des sociétés under no. B199780 (the “Company”); and |
| (2) |
THE ORIGINAL CONSENTING NOTEHOLDERS as listed in Schedule 1 (The Original Consenting Noteholders) (the “Original Consenting Noteholders”). |
Background
| (A) |
The Company has issued the EUR 200,000,000 1.375% convertible notes maturing on 28 November 2022 (ISIN DE000A19SPK4) (outstanding as at the date of this Agreement, the “2022 Notes”) and the EUR 300,000,000 3.5% notes maturing on 15 April 2023 (ISIN DE000A19YDA9) (outstanding as at the date of this Agreement, the “2023 Notes” and together with the 2022 Notes, the “Notes”). As of the date of this Agreement, 2022 Notes in the aggregate nominal amount of EUR 11,600,000 are held by the Company. |
| (B) |
The Company finds itself in financial difficulties and will not be able to repay or refinance the Notes at their respective maturity. Against this background, the Company and the Ad Hoc Group (in each case, together with their respective professional advisers) have been in negotiations with a view to stabilising the Company and develop a long-term financing concept for the Company and the Group. |
| (C) |
Against this background, the Parties have agreed to enter into this Agreement to confirm their support for and facilitate the implementation of the Restructuring (as defined below) subject to the terms and conditions of this Agreement. |
IT IS AGREED as follows:
E. DEFINITIONS AND INTERPRETATION
| I. |
Definitions In this Agreement: “2022 Notes” has the meaning given to that term in Recital (A). “2023 Notes” has the meaning given to that term in Recital (A). “Ad Hoc Group” means the ad hoc group of Consenting Noteholders advised by the Ad Hoc Group Advisers. “Ad Hoc Group Advisers” means together the Ad Hoc Group Counsel and the Ad Hoc Group Financial Adviser. “Ad Hoc Group Counsel” means Milbank LLP. “Ad Hoc Group Financial Adviser” means Houlihan Lokey (Europe) GmbH. “Additional Company Parties” means the persons which have become a Company Party in accordance with Clause 4.2 (Additional Company Parties) and “Additional Company Party” means any of them. “Additional Consenting Noteholders” means the persons which have become a Consenting Noteholder in accordance with Clause 4 (Accessions) or Clause 5 (Transfers) and “Additional Consenting Noteholder” means any of them. “Additional Debt” has the meaning given in Clause 5.2 (Additional Debt). “Affiliates” means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company or a Related Fund. “Agreed Form” means, with respect to any document, agreement, instrument, announcement, consent, notice or other written material, a form and substance which each of (i) the Company (or the Company Counsel on their behalf), and (ii) the Majority Consenting Noteholders (or the Ad Hoc Group Counsel on their behalf) have confirmed in writing is acceptable to them. “Agreement” has the meaning given to that term in the preamble. “Authorisation” includes an authorisation, consent, approval, resolution, licence, concession, franchise, permit, exemption, filing, notarisation or registration. “Bridge Financing” means the bridge financing which may be provided to the relevant members of the Group pursuant to the Restructuring Term Sheet. “Bridge Debt” means all present and future moneys, debts and liabilities due, owing or incurred from time to time by any member of the Group under or in connection with the Bridge Financing (in each case, whether alone or jointly, or jointly and severally, with any other person, whether actually or contingently, and whether as principal, surety or otherwise). “Bridge Debt Issue Date” means, in relation to each Bridge Debt, the date on which such the Bridge Debt is issued. “Business Day” means each day (other than a Saturday or Sunday) on which banking institutions are open for general, non-automated business in London, Frankfurt/Main and Luxembourg. “Clearing System” means Clearstream Banking AG and, as applicable, Euroclear SA/NV. “Company Advisers” means the Company Counsel and the Company Financial Adviser. “Company Counsel” means Weil, Gotshal & Manges LLP and its affiliates, or any successor legal adviser to the Company in connection with the Restructuring. “Company Financial Adviser” means Rothschild & Co Deutschland GmbH and its affiliates, or any successor financial adviser to the Company in connection with the Restructuring. “Company Parties” means the Company and the Additional Company Parties and “Company Party” means any of them. “Company Party Accession Letter” means a document substantially in the form set out in Schedule 4 (Form of Company Party Accession Letter). “Confidential Annexure” means, in relation to a Consenting Noteholder, the confidential annexure to its signature page to this Agreement and/or any Noteholder Accession Letter (as applicable) or any digital form capturing substantially the same information via the Information Agent’s Website in form and substance acceptable to the Company (acting reasonably). “Consent Solicitation” means a voting process, consent solicitation and/or exchange offer under the German Bond Act (Schuldverschreibungsgesetz) in relation to any of the Notes to implement the Restructuring as described in the Restructuring Term Sheet. “Consenting Noteholders” means (i) the Original Consenting Noteholders; (ii) any Noteholder which has become an Additional Consenting Noteholder in accordance with Clause 4.1 (Additional Consenting Noteholders); and (iii) any Noteholder which has become a Consenting Noteholder in accordance with Clause 5 (Transfers), in each case in respect of its Locked-Up Debt unless, in each case, it has ceased to be a Consenting Noteholder in accordance with the terms of this Agreement, and “Consenting Noteholder” means any of them. “Designated Obligor” means each entity which, pursuant to the Restructuring Term Sheet, is designated to provide any guarantee and/or security in connection with the implementation of the Restructuring. “Dispute” has the meaning given to that term in Clause 25 (Enforcement). “Due Diligence” has the meaning given to that term in Clause 3.3 (Due Diligence). “Effective Date” means the date at which this Agreement becomes effective and binding on the relevant Parties in accordance with Clause 2 (Effectiveness of this Agreement). “Effective Date Conditions” means:
“Enforcement Action” means:
provided that, the filing of any proof of claim or other documentation necessary to preserve the validity, existence or priority of claims in respect of the Notes Debt or any security interest in connection with the Notes Debt shall not constitute an Enforcement Action. “Event of Default” means any Kündigungsgrund under and as defined in the Notes Terms and Conditions of the 2022 Notes and any Event of Default under and as defined in the Notes Terms and Conditions of the 2023 Notes. “Existing Ad Hoc Group Adviser NDA” means each of
“Fee Arrangement” means any fee arrangement agreed from time to time between a Company Party and an Ad Hoc Group Adviser and the fee letter entered into between the Company and Arendt & Medernach S.A. „Financial Indebtedness“ means any indebtedness for or in respect of:
“Governmental Body” means any government or governmental or regulatory body thereof, or political subdivision thereof, whether federal, state, local or foreign, or any agency of such body, or any court or arbitrator (public or private). “Group” means the Company and each of its Subsidiaries from time to time. “Holding Company” means, in relation to a company, corporation or partnership, any other company, corporation or partnership in respect of which it is a Subsidiary. “Immediately Effective Provisions” means
“Incumbent CFO” means Udo Giegerich in his capacity as member of the Company’s management board acting as Chief Financial Officer (CFO). “Incumbent COO” means Izabela Danner in her capacity as member of the Company’s management board acting as Chief Operating Officer (COO). “Individual Holding” means, in relation to a Consenting Noteholder,
“Information Agent” means the person acceding to this Agreement pursuant to Clause 4.3 (Information Agent). “Information Agent Accession Letter” means a document substantially in the form set out in Schedule 5 (Form of Information Agent Accession Letter). “Information Agent’s Website” means the website maintained by the Information Agent in connection with the Restructuring, as notified to the Parties from time to time. “Initial Parties” means the parties referred to in paragraphs (1) and (2) of the preamble. “Investment Manager Party” has the meaning given to that term in Clause 1.4(b) (Execution by Consenting Noteholders). “Legal Adviser” means the Ad Hoc Group Counsel and/or the Company Counsel, each as relevant. “Limitation Acts” means the applicable limitation law (including sections 194 et seq. of the German Civil Code (Bürgerliches Gesetzbuch)). “Lock-Up Period” means the period commencing from and including the date of this Agreement and ending on the Termination Date. “Locked-Up Debt” means in relation to each Consenting Noteholder the amount of Notes Debt and Bridge Debt held by that Consenting Noteholder from time to time, including:
in each case to the extent not reduced or transferred by a Consenting Noteholder under and in accordance with this Agreement and other than any Notes Debt or Bridge Debt held in the capacity as Qualified Market-maker. “Locked-Up Shares” means in relation to each Shareholder Party the shares in the Company (including ancillary rights) held by that Shareholder Party from time to time, including the shares evidenced in any Proof of Holdings (Shares) (including ancillary rights) and any other shares in the Company (including ancillary rights) transferred to it after the date of this Agreement: “Long-Stop Date” means 30 April 2023 or such later date as may be agreed in writing by each of:
which date shall be not later than 30 June 2023 unless each of (i) the Company and (ii) the Majority Consenting Noteholders agree otherwise in writing. “Majority Ad Hoc Group” means the members of the Ad Hoc Group (i) whose Locked-Up Debt represents at least 50.1% by value of the aggregate Locked-Up Debt of all members of the Ad Hoc Group, and (ii) who represent at least two institutions in number as defined by ultimate parent company and not individual subsidiaries, funds or accounts. “Majority Consenting Noteholders” means the Consenting Noteholders (i) whose Locked-Up Debt represents at least 50.1% by value of the aggregate Locked-Up Debt of all Consenting Noteholders, and (ii) who represent at least two institutions which are members of the Ad Hoc Group in number as defined by ultimate parent company and not individual subsidiaries, funds or accounts. “Material Adverse Effect” means, by reference to the position as at the date of this Agreement, any changes, events, or circumstances that, taken together or as a whole, could have a material adverse effect on (i) the creditworthiness, business, assets, operations, or financial condition of the Group as a whole, (ii) the Company Parties’ ability to perform their obligations under this Agreement or (iii) the ability of the Restructuring to be implemented before the Long-Stop Date. “Noteholder Accession Letter” means a document substantially in the form set out in Schedule 3 (Form of Noteholder Accession Letter), including (for the avoidance of doubt) any digital form capturing the same information via the Information Agent’s Website in form and substance acceptable to the Company (acting reasonably). “Noteholder” means a legal and/or beneficial owner of the ultimate economic interest in the Notes. “Notes” has the meaning given to that term in Recital (A). “Notes Amendments” means the amendments to be made to the Notes contemplated by the Restructuring Term Sheet and necessary or incidental thereto as agreed between the Company and the Majority Consenting Noteholders. “Notes Amendments Documentation” means all documents necessary or reasonably desirable to implement the Notes Amendments. “Notes Debt” means all present and future moneys, debts and liabilities due, owing or incurred from time to time by any member of the Group to any Noteholder under or in connection with the Notes (in each case, whether alone or jointly, or jointly and severally, with any other person, whether actually or contingently, and whether as principal, surety or otherwise). “Notes Terms and Conditions” means the term and conditions of the 2022 Notes and the terms and conditions of the 2023 Notes. “Notified Locked-Up Debt” means, in respect of a Consenting Noteholder, the amount of Notes Debt it has notified the Information Agent that it holds in its Confidential Annexure (including any updated Confidential Annexure) and any Transfer Certificate. “Original Consenting Noteholders” has the meaning given to that term in the preamble to this Agreement. “Party” means a party to this Agreement. “Proof of Holdings” means any Proof of Holdings (Notes) and any Proof of Holdings (Shares). “Proof of Holdings (Notes)” means a statement from a Consenting Noteholder’s custodian, trustee, prime broker, or similar party, confirming all or part of that Consenting Noteholder’s holding of Notes Debt, in form and substance satisfactory to the Information Agent (acting reasonably). For the avoidance of doubt, any Consenting Noteholder which holds its Notes Debt as a participant in the relevant Clearing System may provide its own Proof of Holdings (Notes). “Proof of Holdings (Shares)” means a statement from a Shareholder Party’s custodian, trustee, prime broker, or similar party, confirming all or part of that Shareholder Party’s holding of shares in the Company, in form and substance satisfactory to the Information Agent (acting reasonably). For the avoidance of doubt, any Shareholder Party which holds its shares in the Company as a participant in the relevant Clearing System may provide its own Proof of Holdings (Shares). “Qualified Market-maker” means an entity that:
“Quasi-Security” means any
in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset. “Related Fund” means in relation to a fund (the “First Fund”) a fund which is (i) managed or advised by the same investment manager or investment adviser as the First Fund or (ii) if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser of the First Fund. “Representatives” means, with respect to a Party, all members of the board of managers and the non-statutory advisory board and, in each case, their advisors, and with respect to a Party, its affiliates and its and their directors, officers, partners, members, employees, advisors (including accountants and auditors), general partners and investment funds and accounts managed or advised by them (and their directors, officers, partners, members, advisors, general partners and employees) and/or its managers or advisors. “Reservations” means:
“Restructuring” has the meaning given to this term in the Restructuring Term Sheet. “Restructuring Documents” means any documents, agreements and instruments necessary to implement or consummate the Restructuring, including:
in each case in Agreed Form. “Restructuring Effective Date” means the date on which the last of the Restructuring Documents has become effective in accordance with its terms and all conditions to completion or effectiveness thereunder have been satisfied (or waived). “Restructuring Term Sheet” means the term sheet attached to this Agreement in Schedule 2 (Restructuring Term Sheet). „Security“ means a mortgage, charge, pledge, lien, transfer for security purposes, assignment for security purpose or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect. “Shareholder Conditions” means the conditions that
“Shareholder Parties” means the persons which have become a Shareholder Party in accordance with Clause 4.4 (Shareholder Parties) and “Shareholder Party” means any of them. “Shareholder Party Accession Letter” means a document substantially in the form set out in Schedule 6 (Form of Shareholder Party Accession Letter). “Specified Event of Default” means any Event of Default which would be triggered pursuant to subparagraph (a)(iv)(B) of § 14 (Termination Rights of the Noteholders in Case of an Event of Default) of the Terms and Conditions of the 2023 Notes if the 2022 Notes were not redeemed at their current final maturity on 28 November 2022. “Subsidiary” means a subsidiary within the meaning of section 1159 of the Companies Act 2006. “Surviving Provisions” means each of the following provisions of this Agreement:
“Termination Date” means the date on which this Agreement is terminated pursuant to and in accordance with Clause 6.1 (Automatic termination) or 6.2 (Voluntary termination). “Transaction Documents” means this Agreement, all documents relating to the Bridge Financing and the Restructuring Documents. “Transfer” means the assignment, novation, sub participation, encumbering, creating a trust over or otherwise disposing of in any manner whatsoever of any interest in the Notes Debt. “Transfer Certificate” means written confirmation issued by two Consenting Noteholders to the Company of the principal amount of Locked-Up Debt transferred by one Consenting Noteholder to the other Consenting Noteholder at the time of the confirmation, in the form of Schedule 7 (Form of Transfer Certificate). |
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| II. |
Construction Unless it is clear from the context, any reference in this Agreement to:
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| III. |
Third-party rights Unless expressly provided for in this Agreement, a person who is not a Party has no right to enforce or to enjoy the benefit of any term of this Agreement. Notwithstanding any term of this Agreement, this Agreement may be terminated, and any term of this Agreement may be amended or waived, without the consent of any person who is not a Party. |
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| IV. |
Execution by Consenting Noteholders
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F. EFFECTIVENESS OF THIS AGREEMENT
| I. |
The Immediately Effective Provisions shall become effective and binding on each of the Initial Parties on the date on which this Agreement has been duly executed by each of the Initial Parties. |
| II. |
The provisions of this Agreement other than the Immediately Effective Provisions shall become effective and binding on each of the Initial Parties on the date on which each of the Effective Date Conditions (to the extent not waived by the Majority Consenting Noteholders) has been satisfied. |
| III. |
This Agreement shall become binding on an Additional Consenting Noteholder when that Additional Consenting Noteholder delivers a duly executed Noteholder Accession Letter to the Information Agent, on an Additional Company Party when that Additional Company Party delivers a duly executed Company Party Accession Letter to the Information Agent and on Information Agent when Information Agent delivers a duly executed Information Agent Accession Letter to the Company. |
G. SUPPORTING AND IMPLEMENTING THE RESTRUCTURING
| I. |
General Undertakings to Support the Restructuring
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| II. |
Negotiation of Restructuring Documents
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| III. |
Due Diligence
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| IV. |
Specific Undertakings by the Company Parties
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| V. |
Specific Undertakings by the Consenting Noteholders
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| VI. |
Specific Undertakings of Shareholder Parties
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| VII. |
Notification of Impediments and Breaches
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H. ACCESSIONS
| I. |
Additional Consenting Noteholders
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| II. |
Additional Company Parties
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| III. |
Information Agent
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| IV. |
Shareholder Parties
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I. TRANSFERS
| I. |
Consenting Noteholders Subject to paragraph (b) of Clause 3.5 (Specific Undertakings by the Consenting Noteholders), during the Lock-Up Period no Consenting Noteholder may enter into a Transfer in connection with its Locked-Up Debt or this Agreement in favour of any person unless the Information Agent has confirmed to the transferor that the transferee:
in each case, each of the transferor and the transferee has delivered a duly completed and signed Transfer Certificate to the Information Agent confirming the total principal amount of Locked-Up Debt held by or owed to it as at the date of and reflecting such Transfer. The Information Agent shall provide any confirmation requested pursuant to this Clause 5.1 (Consenting Noteholders) promptly. |
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| II. |
Additional Debt
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| III. |
Bridge Debt
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| IV. |
Consenting Noteholder ceasing to be a Party Following the Transfer of all of its Locked-Up Debt to another person in a manner permitted by this Agreement, a Consenting Noteholder shall cease to be a Consenting Noteholder, save that the Surviving Provisions shall remain in force in respect of that Consenting Noteholder and it shall remain liable for any breaches of this Agreement that occurred prior to the Transfer. |
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| V. |
Qualified Market-makers A Consenting Noteholder may transfer Locked-Up Debt to a Qualified Market-maker if such Qualified Market-maker has the purpose and intent of acting as a Qualified Market-maker in respect of the relevant Locked-Up Debt, in which case such Qualified Market-maker shall not be required to accede to this Agreement or otherwise agree to be bound by the terms and conditions of this Agreement in respect of such Locked-Up Debt, provided that:
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| VI. |
Limitations
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| VII. |
If a Party anticipates that it will, or is reasonably likely to, fail to take or refrain from taking action which would otherwise have been required were it not for this Clause 5.6 (Limitations), it shall so notify the Company, with a copy to the Ad Hoc Group Counsel, promptly upon becoming so aware. |
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| VIII. |
If a Party fails to take or refrains from taking action which would otherwise have been required were it not for this Clause 5.6 (Limitations), it shall so notify the Company, with a copy to the Ad Hoc Group Counsel, promptly upon becoming so aware, and the Company or the Majority Consenting Noteholders shall be entitled to require the relevant Party to provide reasonably satisfactory evidence (without any obligation on such Party whatsoever to breach any relevant privilege) as to why taking or refraining from taking the action would have given rise to the breach of the applicable law, regulation, statute or legal or fiduciary duty referred to in this Clause 5.6 (Limitations). |
J. TERMINATION
| I. |
Automatic termination This Agreement shall automatically terminate
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| II. |
Voluntary termination This Agreement may be terminated as to all Parties:
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| III. |
Individual voluntary termination by holder of Locked-up Debt
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| IV. |
Effect of termination This Agreement will cease to have any further effect on the date on which it is terminated under Clause 6.1 (Automatic termination), Clause 6.2 (Voluntary termination) or, relation to any Locked-up Creditor only, Clause 6.3 (Individual voluntary termination by holder of Locked-up Debt) save for the Surviving Provisions which shall remain in full force and effect and save in respect of any liability arising or breaches of this Agreement that occurred prior to termination. |
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| V. |
Notification of Termination The Company shall promptly notify the other Parties upon becoming aware that this Agreement may be, or has been, terminated under Clause 6.1 (Automatic termination) or Clause 6.2 (Voluntary termination). |
K. AMENDMENTS AND WAIVERS
| I. |
Required consents Subject to Clause 7.2 (Exceptions), any term of this Agreement may be amended or waived if agreed in writing by the Company and the Majority Consenting Noteholders and any such amendment or waiver shall be binding on all Parties. |
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| II. |
Exceptions An amendment or waiver that:
may not be effected without the prior written consent of that Consenting Noteholder. |
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| III. |
Other Where any amendment or waiver requires the consent of any Party, consent shall not be unreasonably withheld or delayed. |
L. REPRESENTATIONS
| I. |
Representations of the Consenting Noteholders Each Consenting Noteholder makes the representations and warranties set out in this Clause 8.1 (Representations of the Consenting Noteholders) to each other Party on the date on which it becomes a Party by reference to the facts and circumstances existing on that date:
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| II. |
Representations of the Company Parties The Company, on the date of this Agreement, and each other Company Party on the date of its accession to this Agreement, make the representations and warranties set out in this Clause 8.2 (Representations of the Company Parties) to each other Party, subject to the other provisions of this Agreement (including without limitation Clause 5.6 (Limitations)):
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| III. |
Representations of Shareholder Parties Each Shareholder Party, on the date of its accession to this Agreement, makes the representations and warranties set out in this Clause 8.3 (Representations of Shareholder Parties) to each other Party, subject to the other provisions of this Agreement (including without limitation Clause 5.6 (Limitations)):
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M. CONFIDENTIALITY
| I. |
Without prejudice to the terms of any confidentiality agreement (“Confidentiality Agreement”) entered into by any Consenting Noteholder or Shareholder Party (the terms of which shall continue to apply), the terms of this Clause 9 (Confidentiality) shall apply in addition to the terms of the relevant Confidentiality Agreement. |
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| II. |
Subject to Clause 9.3 below, the Consenting Noteholder and Shareholder Party shall keep confidential the terms of this Agreement and all information provided to it under this Agreement (the “Confidential Information”). |
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| III. |
Each Consenting Noteholder and Shareholder Party (other than under paragraph (d) below) may disclose the Confidential Information to:
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| IV. |
Each Consenting Noteholder and Shareholder Party agrees that the Company shall not be required to cleanse any of the information provided pursuant to the terms of this Agreement, other than as expressly agreed in this Agreement or in accordance with any applicable Confidentiality Agreement. |
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| V. |
The restrictions imposed by this Clause 9 (Confidentiality) shall not apply in respect of any information:
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N. PUBLICITY
| I. |
Without prejudice to Clause 11 (Information relating to Locked-up Debt), each Party acknowledges that the Company may make this Agreement publicly available, including by publication on its website, by a regulatory information service, and by any other reasonable means chosen by the Company subject to redaction of Schedule 1 (The Original Consenting Noteholders), any signature page of a Consenting Noteholder and any Confidential Annexure. |
| II. |
Except as permitted by Clause 10.1 above and Clause 10.3 below, no announcement regarding or referencing this Agreement or the Restructuring (including the identity of any Consenting Noteholder) will be made by or on behalf of any Party (whether publicly or otherwise) other than in the form agreed amongst the Majority Consenting Noteholders and the Company and, to the extent that such announcement identifies or refers to a Consenting Noteholder and/or, as applicable, member of the Ad Hoc Group by name, the relevant Consenting Noteholder and the relevant member of the Ad Hoc Group, respectively. |
| III. |
Clause 10.1 above does not apply to any announcement or public statement (i) required or requested to be made by any Governmental Body, banking, taxation or other authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation; or (ii) required to be made in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes. Any Party required to make such an announcement shall, unless the requirement is to make an immediate announcement with no time for consultation or unless otherwise not permitted to do so by law or regulation, consult with the Ad Hoc Group and the Company before making the relevant announcement. |
O. INFORMATION RELATING TO LOCKED-UP DEBT
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Subject to Clause 11.2 (Information relating to Individual Holdings), each Party:
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| II. |
Information relating to Individual Holdings Each Party agrees that Individual Holdings are strictly confidential, and it will not make any disclosure to any person, including to any other Party or other Noteholder, which would identify an Individual Holding without the prior written consent of the relevant Consenting Noteholder, except:
provided, however, that the relevant disclosing party shall use its reasonable best efforts to maintain the confidentiality of such Individual Holding in the context of the relevant circumstance described in, as applicable, paragraphs (a) to (c) above and will, to the extent permitted by applicable law or regulation, provide any such Consenting Noteholder with prompt notice of any such request or requirement so that such Consenting Noteholder may seek a protective order or other appropriate remedy and the disclosing party will fully cooperate with such Consenting Noteholder’s efforts to obtain the same. |
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| III. |
The Parties agree and acknowledge that all Noteholder Accession Letters, Company Party Accession Letters, Confidential Annexures, Transfer Certificates, and Proofs of Holdings may be disclosed by the Information Agent to the Company Parties, the Company Advisers, and the Ad Hoc Group Advisers, provided they each agree not to make any disclosure to any person other than the foregoing, including to any Consenting Noteholder or other Noteholder, which would identify an Individual Holding on the same terms as Clause 11.2 (Information relating to Individual Holdings). |
P. INFORMATION AGENT
| I. |
The Company Parties have appointed the Information Agent, and the Information Agent shall be responsible for, among other things:
and the decision of the Information Agent in relation to any such calculations which may be required shall be final (in the absence of manifest error) and may not be disputed by any Consenting Noteholder, and each Consenting Noteholder in its capacity as such hereby unconditionally and irrevocably waives and releases any claims which may arise against the Company or the other Company Parties, or the Information Agent, (save in the case of wilful misconduct, fraud or gross negligence) in each case in relation to the Information Agent’s performance of its roles in connection with this Agreement. |
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| II. |
The Information Agent shall be entitled to rely in good faith upon any information supplied to it (including, without limitation, in any Confidential Annexure and any Proof of Holdings). |
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| III. |
The Information Agent shall provide any Consenting Noteholder with such information relating to the calculations referred to above as that person may reasonably request for the purposes of evaluating and checking such calculations and reconciliations, provided that no such information shall be provided where it would or might (in the Information Agent’s reasonable opinion) result in a breach of Clause 11.2 (Information relating to Individual Holdings). |
Q. CONSENTING NOTEHOLDERS AND AD HOC GROUP
| I. |
Agreements amongst the Consenting Noteholders This Clause 13 sets out certain rights and obligations amongst Consenting Noteholders only and is not intended to impact the rights and obligations of each Consenting Noteholder vis-à-vis any other Party. |
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| II. |
No representation Nothing in this Agreement shall create or imply any fiduciary duty, any duty of trust or confidence in any form on the part of the Ad Hoc Group or any member of the Ad Hoc Group (in its capacity as a member of the Ad Hoc Group and not in its capacity as a Noteholder and/or agent (as applicable)) to any other Party or the other Consenting Noteholders under or in connection with this Agreement, the Notes Terms and Conditions or the Restructuring. |
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| III. |
Ad Hoc Group not an agent The Ad Hoc Group is not an agent and does not and will not “act for” or act on behalf of or represent the Consenting Noteholders in any capacity, will have no fiduciary duties to the Consenting Noteholders and will have no authority to act for, represent, or commit the Consenting Noteholders. The Ad Hoc Group will have no obligations other than those for which express provision is made in this Agreement (and for the avoidance of doubt the Ad Hoc Group is not under any obligation to advise or to consult with any Consenting Noteholders on any matter related to this Agreement). |
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| IV. |
No requirement to disclose information received in other capacities
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| V. |
Ad Hoc Group may continue to deal with the Company The Ad Hoc Group members will remain free to deal with the Company Parties and the Group each on its own account and will therefore not be bound to account to any Party for any sum, or the profit element of any sum, received by it for its own account. |
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| VI. |
Consenting Noteholders can seek their own advice For the benefit of the Ad Hoc Group, each Consenting Noteholder acknowledges and agrees that it will remain free to seek advice from its own advisers regarding its exposure as a Consenting Noteholder and will, as regards its exposure as a Consenting Noteholder, at all times continue to be solely responsible for making its own independent investigation and appraisal of the business, financial condition, creditworthiness, status and affairs of the Company and the Group. |
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| VII. |
Assumptions as to authorisation The Ad Hoc Group may assume that (and shall not be required to verify):
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| VIII. |
Responsibility for documentation The Ad Hoc Group:
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| IX. |
Own responsibility
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| X. |
Exclusion of liability
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R. SEPARATE RIGHTS
| I. |
The obligations of each Party under this Agreement are several. Failure by a Party to perform its obligations under this Agreement does not affect the obligations of any other Party under this Agreement. No Party is responsible for the obligations of any other Party under this Agreement. |
| II. |
The rights of each Party under or in connection with this Agreement are separate and independent rights. A Party may separately enforce its rights under this Agreement. |
| III. |
Nothing in this Agreement will be interpreted as creating the obligation of all or part of the Consenting Noteholders that are shareholders of the Company to assume or implement any kind of common management policy with respect to the Company. |
S. SPECIFIC PERFORMANCE
|
Without prejudice to any other remedy available to any Party, the obligations under this Agreement shall, subject to applicable law, be the subject of specific performance by the relevant Parties. Each Party acknowledges that damages shall not be an adequate remedy for breach of the obligations under this Agreement. |
T. NOTICES
| I. |
Communications in writing Subject to Clause 16.2 (Addresses)], any communication to be made under or in connection with this Agreement shall be made in writing by letter or by email:
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| II. |
Addresses
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| III. |
Delivery
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| IV. |
English language Any communication provided under or in connection with this Agreement must be in English. |
U. PARTIAL INVALIDITY
|
If, at any time, any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. |
V. REMEDIES AND WAIVERS
|
No failure to exercise, nor any delay in exercising, on the part of any Party, any right or remedy under this agreement shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law. |
W. RESERVATION OF RIGHTS
| 1. |
Unless expressly provided to the contrary, this Agreement does not amend or waive any Party’s rights under the Notes Terms and Conditions or any other documents and agreements, or any Party’s rights as creditors of the Company or any member of the Group unless and until the Restructuring is consummated (and then only to the extent provided under the terms of the Restructuring Documents). |
| 2. |
The Parties fully reserve any and all of their rights, until such time as the Restructuring is implemented. |
| 3. |
If this Agreement is terminated by any Party for any reason, the rights of that Party against the other Parties to this Agreement and those other Parties’ rights against the terminating Party shall be fully reserved. |
X. COSTS AND EXPENSES
|
Subject to the other terms of this Agreement and the terms of any Fee Arrangement (which terms shall, in the event of any inconsistency with this Clause 20 (Costs and Expenses), prevail), to the extent that any incurred fees and expenses of each Ad Hoc Group Counsel incurred in connection with the Restructuring have not already been paid in full by the Company, the Company agrees that it will pay (or will procure the payment of) all unpaid fees and expenses by no later than the earlier of (i) three (3) Business Days after the Termination Date, and (ii) the Restructuring Effective Date. |
Y. COUNTERPARTS
|
This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement. |
Z. OBLIGORS AGENT
| 1. |
Each Company Party (other than the Company) by its execution of this Agreement or, as applicable, Company Party Accession Letter, irrevocably appoints the Company its agent in relation to this Agreement and irrevocably authorises:
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| 2. |
Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Company as agent for the other Company Parties or given to the Company as agent for the other Company Parties under this Agreement on behalf of another Company Party shall be binding for all purposes on that Company Party as if that Company Party had expressly made, given or concurred with it. In the event of any conflict between any notices or other communications for the Company as agent for the Company Party and any other Company Party, those of the Company as agent for the Company Parties shall prevail. |
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| 3. |
For the purpose of acting as their agent in accordance with this Clause 22, each of the Company Parties (other than the Company) exempts, to the extent legally possible, the Company from the restrictions imposed by section 181 of the German Civil Code (Bürgerliches Gesetzbuch) and any equivalent restrictions under any other applicable law. Any Company Party (other than the Company) which is barred by its constitutional documents to do so shall notify the Information Agent and the Ad Hoc Group Legal Counsel accordingly. |
AA. ENTIRE AGREEMENT
|
This Agreement and the documents referred to in and/or entered into under this Agreement contain the whole agreement between the Parties relating to the subject matter of this Agreement at the date hereof to the exclusion of any terms implied by law which may be excluded by contract and supersedes any previous written or oral agreement between the Parties in relation to matters dealt with in this Agreement. |
BB. GOVERNING LAW
|
This Agreement and all non-contractual obligations arising out of or in connection with it are governed by German law. |
CC. ENFORCEMENT
| 1. |
The courts of Frankfurt/Main have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to non-contractual obligations arising out of or in connection with this Agreement or a dispute regarding the existence, validity or termination of this Agreement) (a “Dispute”). |
| 2. |
The Parties agree that the courts of Frankfurt/Main are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary. |
DD. SERVICE OF PROCESS
| 1. |
Without prejudice to any other mode of service allowed under any relevant law, each Company Party and Shareholder Party (other than a Company Party or Shareholder Party incorporated in Germany):
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| 2. |
If any person appointed as an agent for service of process by a Company Party or Shareholder Party is unable for any reason to act as agent for service of process, such Company Party or Shareholder Party must immediately appoint another agent and notify the Parties of the name and address details of such agent for service of process. |
This Agreement has been entered into on the date stated at the beginning of this Agreement.
[SIGNATURES]
[signature pages to be included in execution version]
Schedule 1
The Original Consenting Noteholders
[●]
Schedule 2
Restructuring Term Sheet
TERM SHEET
Summarising the key terms of the financial restructuring of
CORESTATE Capital Holding S.A.
Introduction and Important Notes
This term sheet (the „Term Sheet„) sets out the key terms of the financial restructuring of the € 200,000,000 1.375% notes due 28 November 2022 (the „2022 Notes„)2 and the € 300,000,000 3.50% notes due 15 April 2023 (the „2023 Notes“ and together with the 2022 Notes, the „Notes„) issued by Corestate Capital Holding S.A. (the „Company“ and together with its subsidiaries, the „Group„) (the „Proposed Transaction„).
The Proposed Transaction would be effected by an amendment and an exchange of the 2022 Notes and the 2023 Notes by means of, amongst other things, resolutions of the holders of the 2022 Notes and the holders of the 2023 Notes, respectively, pursuant to the German Bond Act (Schuldverschreibungsgesetz) and the Debt-to-Equity Swap (as defined below) in order to restructure the debt and equity capital structure of the Company and align the legal ownership of the Company to the commercial ownership of the Company by way of the holders of the 2022 Notes and 2023 Notes becoming the new majority legal owners of the Company as set out in further detail herein. Given the complexities to implement a Debt-to-Equity Swap, the ad-hoc committee of holders of the Notes (the „Committee„) would be willing to implement the Proposed Transaction in a two-step process: first, execution and effectiveness of the lock-up agreement comprising this term sheet (the „Lock-up Agreement„) which, together with the satisfaction of the Shareholder Conditions (as defined below), constitutes the conditions precedent to the effectiveness of an extension of the maturity of the 2022 Notes to 15 April 2023 (the „2022 Notes Maturity Extension CPs„) and second, implementing the Proposed Transaction, including the Debt-to-Equity Swap, as set out in this Term Sheet (all steps taken together, the „Restructuring„).
The extension of the maturity of the 2022 Notes to 15 April 2023 (being subject to the 2022 Notes Maturity Extension CPs) shall be resolved in a noteholders’ meeting to be held on 28 November 2022. Such resolution shall be consummated by the Company only if and once the 2022 Notes Maturity Extension CPs are satisfied.
This Term Sheet is provided upon the express request of the Company. The Company has approached the members of the Committee and, as applicable, other holders of Notes to consider committing financial support in the context of the Proposed Transaction and, as the case may be, further financing support and arrangements to achieve a successful financial restructuring of the Company and the Group.
This Term Sheet does not constitute an offer to buy or sell securities.
2 NB: References in this Term Sheet to the 2022 Notes shall exclude the €11.6m convertible notes held by the Company which are required to be cancelled and equitised (for the avoidance of doubt, without any consideration for the Company) prior to the implementation of the Proposed Transaction, see F. (Conditions precedent to the implementation of the Proposed Transaction).
A. Key structural elements of Proposed Transaction
| CRO: |
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| Corporate reorganisation: | Corporate reorganisation of the Group to be implemented as follows (unless waived by the Majority Consenting Noteholders (as defined in the Lock-up Agreement)):
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| Debt-to-Equity and Debt-to-Debt-Swap: |
|
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| RETT: | Since the acquisition of Hannover Leasing GmbH & Co. KG, approx. 15,971,553 of shares transferred outside stock exchanges count against the 90 per cent. threshold for German real estate transfer tax (RETT) purposes. In the context of a capital increase, approx. 148,028,742 of shares should be capable of being allocated to new shareholders (which would then hold 81.25 per cent. in the entire (increased) share capital) without triggering German real estate transfer tax (“RETT”). 4 | |||||||||||||||||||||
| Post-Restructuring Capital Structure: | Stakeholder: | Participation in the Post-Restructuring Capital Structure: | ||||||||||||||||||||
| Holders of 2022 and 2023 Notes | 81.25 per cent. as of closing of the Restructuring, subject to dilution by MIP. 5 | |||||||||||||||||||||
| Former Shareholders: | 18.75 per cent. 6 as of closing of the Restructuring, subject to dilution by MIP. | |||||||||||||||||||||
| New OpCo Notes: |
|
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| New money injection by existing noteholders – New Super Senior Notes: |
|
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| Management incentive program: |
|
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| New Corporate Governance and Anti-Dilution Protection: |
(the requirements set out above taken together, the „Shareholder Conditions„). |
|||||||||||||||||||||
| Key conditions precedent for the completion of the Restructuring and the implementation of the Proposed Transaction: |
See section F. (Conditions precedent to the implementation of the Proposed Transaction) for further conditions precedent. |
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3 NB: The New OpCo Notes will have a lower denomination (and principal amount outstanding per note) than the 2022 Notes and the 2023 Notes, see B. (New OpCo Notes).
4 NB: Subject to final tax review.
5 NB: As set out below under “Management incentive program”.
6 NB: Already including a participation of management in a certain in the Post-Restructuring Capital Structure due to the pre-restructuring shareholdings.
B. New OpCo Notes
| Amount: |
|
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| Pricing: |
|
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| Denomination: | Subject to the amount of reinstated debt, but in any case less than €100,000. | ||||||||||||||||||||||||||||||||||
| Maturity: | 30 December 2026 | ||||||||||||||||||||||||||||||||||
| Ranking: |
|
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| Security: |
|
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| Financial covenants: |
|
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| Mandatory prepayment: |
|
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| Information undertakings: |
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| General undertakings: | Covenants and undertakings customary for turnaround financings of this nature, including, but not limited to:
|
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| Events of default: | Acceleration rights customary for turnaround financings of this nature, including, but not limited to:
|
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| Governing Law/Jurisdiction: | German law; jurisdiction of courts at Frankfurt/Main |
7 Note: Milestone dates TBD once CRO was able to form a view and has discussed this further with management to form a collective view on how the market for various asset disposals is likely to develop and what therefore an appropriate timeframe for realization will be as well as the CRO’s and management’s collective view on the value maximizing strategy regarding several assets and whether it makes sense to further develop them through Corestate or sell them to someone who is better suited to use them.
C. New money – New Super Senior Notes8
| Amount: | Up to an amount of € 25m (subject to confirmatory due diligence and independent verification and confirmation by a CRO regarding the magnitude of cash burn and new money need). | ||||||||
| Issuer: | New OpCo | ||||||||
| Maturity: | 30 December 2026 | ||||||||
| Denomination: | € 100,000 | ||||||||
| Pricing: |
|
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| Ranking/security: |
|
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| Financial covenants: | Same as for New OpCo Notes | ||||||||
| Other terms: | Same as New OpCo Notes, including mandatory prepayment regime, provided that the New Super Senior Notes shall have priority over the New OpCo Notes as regards mandatory prepayments. | ||||||||
| Governing Law/Jurisdiction: | German law; jurisdiction of courts at Frankfurt/Main. | ||||||||
| Bridge Financing: | Up to €10m of the entire new money amount of €25m may be provided prior to the completion of the Proposed Transaction, provided that:
|
8 Note: Instrument tbc and subject formal requirements of relevant funds represented by the Committee.
D. The Debt-to-Equity Swap
| Share Capital Increase: |
|
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| Independent Auditor: | PwC Luxembourg as independent auditor (réviseur d’entreprises). | ||||||||||||||||||
| Report of the Independent Auditor ( réviseur d’entreprises ): | The report shall set out the valuation of the 2022 Notes and 2023 Notes to be contributed into the share capital, share premium account and/or the free reserves of the Company and contain a description of each of the proposed contributions as well as of the methods of valuation used and shall state whether the values derived by the application of these methods correspond at least to the number and nominal value and to the premium on the shares to be issued for them (art 420-10 Law 1915). | ||||||||||||||||||
| Settlement Bank: | [●] acting as settlement bank for the Debt-to-Equity Swap („Settlement Bank„). | ||||||||||||||||||
| Subscription rights of the Settlement Bank and acquisition rights of holders of 2022 Notes and/or 2023 Notes: |
|
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| Conversion Ratio: | Each Note contributed by the Settlement Bank for the share capital increase shall entitle the Settlement Bank to subscribe for approx. [30,712.5] New Shares vis-à-vis the Company (and entitle the Settlement Bank to a corresponding number of subscription rights for such New Shares). | ||||||||||||||||||
| Execution of the Share Capital Increase: |
|
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| Listing of the New Shares: |
|
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| Timeline: | The Parties shall endeavour to meet the milestones by May 2023 at the latest. | ||||||||||||||||||
| Noteholders’ meeting |
|
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| Implementation of the noteholders’ resolutions |
|
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| Closing of the Debt-to-Equity-Swap | As soon as the resolutions of the EGM and the respective noteholders’ meetings have become implementable, the Parties shall take any and all measures to implement such resolutions, in particular, but not limited to:
|
E. The Debt-to-Debt Swap
| Settlement Bank: | [same bank as for D2E swap] acting as settlement bank for the Debt-to-Debt Swap („Settlement Bank„). | ||||||||||||||||
| Subscription rights of the Settlement Bank and acquisition rights of holders of 2022 Notes and/or 2023 Notes: |
|
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| Conversion Ratio | 1:1, i.e., for each 2022 Note or 2023 Note contributed for the share capital increase, the holders of 2022 Notes or 2023 Notes shall be entitled to one (1) New OpCo Note. | ||||||||||||||||
| Listing of the New OpCo Notes: |
|
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| Timeline: | The Parties shall endeavour to meet the milestones by May 2023 at the latest. | ||||||||||||||||
| Noteholders’ meeting |
|
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| Implementation of the noteholders’ resolutions |
|
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| Closing of the Debt-to-Debt-Swap | As soon as the resolutions of the EGM and the respective noteholders’ meetings have become implementable, the Parties shall take any and all measures to implement such resolutions, in particular, but not limited to:
|
F. Conditions precedent to the implementation of the Proposed Transaction
| Customary CPs: | To include customary CPs for transactions of this nature, including:
|
* * *
Schedule 3
Form of Noteholder Accession Letter
| To: | [●], in its capacity as Information Agent |
| Email: | [●] |
| From: | [●] (the “Acceding Party”) |
| Email: | [●] |
Dated: ____________________
Dear Sir/Madam
Lock-up Agreement dated [●] 2022 between, among others, Corestate Capital Holding S.A. and the Original Consenting Noteholders (the “Agreement”)
| 1. |
This is a Noteholder Accession Letter for the purposes of the Agreement and terms defined in the Agreement, but not in this Part A have the same meaning in this Noteholder Accession Letter. |
| 2. |
We agree to be bound by the terms of the Agreement as a Consenting Noteholder. |
| 3. |
Our Locked-Up Debt is set out in the Confidential Annexure to this Noteholder Accession Letter. |
| 4. |
Our notice details for the purposes of Clause 16 (Notices) of the Agreement are as follows: Address: [●] Attn: [●] Email address: [●] |
| 5. |
This Noteholder Accession Letter is governed and construed in accordance with German law. |
Additional Consenting Noteholder
By:
__________________________________
[By:
__________________________________]
CONFIDENTIAL ANNEXURE TO THE NOTEHOLDER ACCESSION LETTER
Our Locked-Up Debt is as follows:
| Notes / Bridge Debt | ISIN | Principal Amount | Euroclear / Clearstream Account Number | Name of custodian, trustee, prime broker or similar |
Schedule 4
Form of Company Party Accession Letter
| To: | [●] in its capacity as Information Agent |
| Email: | [●] |
| From: | [●] |
| Email: | [●] |
Dated: ______________
Dear Sir / Madam,
Lock-up Agreement dated [●] 2022 between, among others, Corestate Capital Holding S.A.and the Original Consenting Noteholders (the “Agreement”)
| 1. |
This is a Company Party Accession Letter for the purposes of the Agreement and terms defined in the Agreement, but not in this letter have the same meaning in this Company Party Accession Letter. |
| 2. |
We agree to be bound by the terms of the Agreement as an Additional Company Party. |
| 3. |
Our notice details for the purposes of Clause 16 (Notices) of the Agreement are as follows: Address: [●] Attn: [●] Email address: [●] |
| 4. |
[Our agent for service of process for the purposes of Clause 26 (Service of Process) of the Agreement is as follows: Address: [●] Attn: [●] Email address: [●] Telephone number: [●]9] |
| 5. |
This Company Party Accession Letter is governed by and construed in accordance with German law. |
[Acceding Obligor]
By:
__________________________________
[By:
__________________________________]
9 Please use this paragraph if you are not incorporated in England and Wales. A telephone number is required for the purposes of service of notices by courier.
Schedule 5
Form of Information Agent Accession Letter
| To: | [●], its capacity as Company |
| Email: | [●] |
| From: | [Information Agent] |
| Email: |
Dated: ______________
Dear Sir / Madam,
Lock-up Agreement dated [●] 2022 between, among others, Corestate Capital Holding S.A. and the Original Consenting Noteholders (the “Agreement”)
| 1. |
This is an Information Agent Accession Letter for the purposes of the Agreement and terms defined in the Agreement, but not in this letter have the same meaning in this Information Agent Accession Letter. |
| 2. |
We agree to be bound by the terms of the Agreement as Information Agent. |
| 3. |
Our notice details for the purposes of Clause 16 (Notices) of the Agreement are as follows: Address: [●] Attn: [●] Email address: [●] |
| 4. |
This Information Agent Accession Letter is governed by and construed in accordance with German law. |
[Acceding Information Agent]
By:
__________________________________
[By:
__________________________________]
Schedule 6
Form of Shareholder Party Accession Letter
| To: | [●], in its capacity as Information Agent (as defined by reference below) |
| Email: | [●] |
| From: | [●] (the “Acceding Party”) |
| Email: | [●] |
Dated: ____________________
Dear Sir/Madam
Lock-up Agreement dated [●] 2022 between, among others, Corestate Capital Holding S.A. and certain persons as Original Consenting Noteholders (the “Agreement”)
| 1. |
This is a Shareholder Party Accession Letter for the purposes of the Agreement and terms defined in the Agreement, but not in this letter have the same meaning in this Shareholder Party Accession Letter. |
| 2. |
We agree to be bound by the terms of the Agreement as a Shareholder Party. |
| 3. |
Our shareholdings in the Company are set out in the Proof of Holdings (Shares) attached to this Shareholder Party Accession Letter. |
| 4. |
Our notice details for the purposes of Clause [16] (Notices) of the Agreement are as follows: Address: [●] Attn: [●] Email address: [●] |
| 5. |
[Our agent for service of process for the purposes of Clause 26 (Service of Process) of the Agreement is as follows: Address: [●] Attn: [●] Email address: [●] Telephone number: [●]10] |
| 6. |
This Shareholder Party Accession Letter is governed and construed in accordance with German law. |
By:
__________________________________
[By:
__________________________________]
10 Please use this paragraph if you are not incorporated in England and Wales. A telephone number is required for the purposes of service of notices by courier.
Schedule 7
Form of Transfer Certificate
| To: | [●], in its capacity as Information Agent |
| Email: | [●] |
Dated: _________________
Dear Sir/Madam
Lock-up Agreement dated [●] 2022 between, among others, Corestate Capital Holding S.A.and the Original Consenting Noteholders (the “Agreement”)
| 1. |
We refer to the Agreement. Terms defined in the Agreement have the same meaning in this letter. This is a Transfer Certificate. |
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| 2. |
[The transferor] (the “Transferor”) and [the transferee] (the “Transferee”) are both Consenting Noteholders as at the date hereof. |
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| 3. |
We write to inform you that the principal amounts of Locked-Up Debt set out in the table below, plus any accrued unpaid interest thereon, have been transferred by the Transferor to the Transferee on [date] 11:
|
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| 4. |
We write to inform you that the principal amounts of Notes Debt (which has not previously been Locked-Up Debt) set out in the table below, plus any accrued unpaid interest thereon, have been transferred to the Transferee on [date] 12:
|
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| 5. |
This Transfer Certificate is governed by and construed in accordance with German law |
The Transferor: [TRANSFEROR]
By: [signature of authorised person signing on behalf of Transferor]
Name: [print name of authorised person]
Email address: [email address of Transferor]
The Transferee: [TRANSFEREE]
By: [signature of authorised person signing on behalf of Transferee]
Name: [print name of authorised person]
Email address: [email address of transferee]
11 Please use this paragraph and delete paragraph 4 if you are a Consenting Noteholder informing of a decrease in your Locked-Up Debt.
12 Please use this paragraph and delete paragraphs 2 and 3 if you are a Consenting Noteholder informing of an increase in your Locked-Up Debt.
ANLAGE 4
Vergleichsfassung Term Sheet
TERM SHEET
Summarising the key terms of the financial restructuring of
CORESTATE Capital Holding S.A.
Introduction and Important Notes
This term sheet (the „Term Sheet„) sets out the key terms of the financial restructuring of the € 200,000,000 1.375% notes due 28 November 2022 (the „2022 Notes„)13 and the € 300,000,000 3.50% notes due 15 April 2023 (the „2023 Notes“ and together with the 2022 Notes, the „Notes„) issued by Corestate Capital Holding S.A. (the „Company“ and together with its subsidiaries, the „Group„) (the „Proposed Transaction„).
The Proposed Transaction would be effected by an amendment and an exchange of the 2022 Notes and the 2023 Notes by means of, amongst other things, resolutions of the holders of the 2022 Notes and the holders of the 2023 Notes, respectively, pursuant to the German Bond Act (Schuldverschreibungsgesetz) and the Debt-to-Equity Swap (as defined below) in order to restructure the debt and equity capital structure of the Company and align the legal ownership of the Company to the commercial ownership of the Company by way of the holders of the 2022 Notes and 2023 Notes becoming the new majority legal owners of the Company as set out in further detail herein. Given the complexities to implement a Debt-to-Equity Swap, the ad-hoc committee of holders of the Notes (the „Committee„) would be willing to implement the Proposed Transaction in a two-step process: first, execution and effectiveness of the lock-up agreement comprising this term sheet (the „Lock-up Agreement„) which, together with the satisfaction of the Shareholder Conditions (as defined below), constitutes the conditions precedent to the effectiveness of an extension of the maturity of the 2022 Notes to 15 April 2023 (the „2022 Notes Maturity Extension CPs„) and second, implementing the Proposed Transaction, including the Debt-to-Equity Swap, as set out in this Term Sheet (all steps taken together, the „Restructuring„).
The extension of the maturity of the 2022 Notes to 15 April 2023 (being subject to the 2022 Notes Maturity Extension CPs) shall be resolved in a noteholders’ meeting to be held on 28 November 2022. Such resolution shall be consummated by the Company only if and once the 2022 Notes Maturity Extension CPs are satisfied.
This Term Sheet is provided upon the express request of the Company. The Company has approached the members of the Committee and, as applicable, other holders of Notes to consider committing financial support in the context of the Proposed Transaction and, as the case may be, further financing support and arrangements to achieve a successful financial restructuring of the Company and the Group.
This Term Sheet does not constitute an offer to buy or sell securities.
13 NB: References in this Term Sheet to the 2022 Notes shall exclude the €11.6m convertible notes held by the Company which are required to be cancelled and equitised (for the avoidance of doubt, without any consideration for the Company) prior to the implementation of the Proposed Transaction, see F. (Conditions precedent to the implementation of the Proposed Transaction).
A. Key structural elements of Proposed Transaction
| CRO: |
|
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| Corporate reorganisation: | Corporate reorganisation of the Group to be implemented as follows (unless waived by the Majority Consenting Noteholders (as defined in the Lock-up Agreement)):
|
|||||||||||||||||||||
| Debt-to-Equity and Debt-to-Debt-Swap: |
|
|||||||||||||||||||||
| RETT: | Since the acquisition of Hannover Leasing GmbH & Co. KG, approx. 15,971,553 of shares transferred outside stock exchanges count against the 90 per cent. threshold for German real estate transfer tax (RETT) purposes. In the context of a capital increase, approx. 148,028,742 of shares should be capable of being allocated to new shareholders (which would then hold 81.25 per cent. in the entire (increased) share capital) without triggering German real estate transfer tax (“RETT”). 15 | |||||||||||||||||||||
| Post-Restructuring Capital Structure: | Stakeholder: | Participation in the Post-Restructuring Capital Structure: | ||||||||||||||||||||
| Holders of 2022 and 2023 Notes | 81.25 per cent. as of closing of the Restructuring, subject to dilution by MIP. 16 | |||||||||||||||||||||
| Former Shareholders: | 18.75 per cent. 17 as of closing of the Restructuring, subject to dilution by MIP. | |||||||||||||||||||||
| New OpCo Notes: |
|
|||||||||||||||||||||
| New money injection by existing noteholders – New Super Senior Notes: |
|
|||||||||||||||||||||
| Management incentive program: |
|
|||||||||||||||||||||
| New Corporate Governance and Anti-Dilution Protection: |
(the requirements set out above taken together, the „Shareholder Conditions„). |
|||||||||||||||||||||
| Key conditions precedent for the completion of the Restructuring and the implementation of the Proposed Transaction: |
See section F. (Conditions precedent to the implementation of the Proposed Transaction) for further conditions precedent. |
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14 NB: The New OpCo Notes will have a lower denomination (and principal amount outstanding per note) than the 2022 Notes and the 2023 Notes, see B. (New OpCo Notes).
15 NB: Subject to final tax review.
16 NB: As set out below under “Management incentive program”.
17 NB: Already including a participation of management in a certain in the Post-Restructuring Capital Structure due to the pre-restructuring shareholdings.
B. New OpCo Notes
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| Pricing: |
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| Denomination: | Subject to the amount of reinstated debt, but in any case less than €100,000. | ||||||||||||||||||||||||||||||||||
| Maturity: | 30 December 2026 | ||||||||||||||||||||||||||||||||||
| Ranking: |
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| Security: |
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| Financial covenants: |
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| Mandatory prepayment: |
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| Information undertakings: |
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| General undertakings: | Covenants and undertakings customary for turnaround financings of this nature, including, but not limited to:
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| Events of default: | Acceleration rights customary for turnaround financings of this nature, including, but not limited to:
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| Governing Law/Jurisdiction: | German law; jurisdiction of courts at Frankfurt/Main |
18 Note: Milestone dates TBD once CRO was able to form a view and has discussed this further with management to form a collective view on how the market for various asset disposals is likely to develop and what therefore an appropriate timeframe for realization will be as well as the CRO’s and management’s collective view on the value maximizing strategy regarding several assets and whether it makes sense to further develop them through Corestate or sell them to someone who is better suited to use them.
C. New money – New Super Senior Notes19
| Amount: | Up to an amount of € 25m (subject to confirmatory due diligence and independent verification and confirmation by a CRO regarding the magnitude of cash burn and new money need). | ||||||||
| Issuer: | New OpCo | ||||||||
| Maturity: | 30 December 2026 | ||||||||
| Denomination: | € 100,000 | ||||||||
| Pricing: |
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| Ranking/security: |
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| Financial covenants: | Same as for New OpCo Notes | ||||||||
| Other terms: | Same as New OpCo Notes, including mandatory prepayment regime, provided that the New Super Senior Notes shall have priority over the New OpCo Notes as regards mandatory prepayments. | ||||||||
| Governing Law/Jurisdiction: | German law; jurisdiction of courts at Frankfurt/Main. | ||||||||
| Bridge Financing: | Up to €10m of the entire new money amount of €25m may be provided prior to the completion of the Proposed Transaction, provided that:
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19 Note: Instrument tbc and subject formal requirements of relevant funds represented by the Committee.
D. The Debt-to-Equity Swap
| Share Capital Increase: |
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| Independent Auditor: | PwC Luxembourg as independent auditor (réviseur d’entreprises). | ||||||||||||||||||
| Report of the Independent Auditor ( réviseur d’entreprises ): | The report shall set out the valuation of the 2022 Notes and 2023 Notes to be contributed into the share capital, share premium account and/or the free reserves of the Company and contain a description of each of the proposed contributions as well as of the methods of valuation used and shall state whether the values derived by the application of these methods correspond at least to the number and nominal value and to the premium on the shares to be issued for them (art 420-10 Law 1915). | ||||||||||||||||||
| Settlement Bank: | [●] acting as settlement bank for the Debt-to-Equity Swap („Settlement Bank„). | ||||||||||||||||||
| Subscription rights of the Settlement Bank and acquisition rights of holders of 2022 Notes and/or 2023 Notes: |
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| Conversion Ratio: | Each Note contributed by the Settlement Bank for the share capital increase shall entitle the Settlement Bank to subscribe for approx. [30,712.5] New Shares vis-à-vis the Company (and entitle the Settlement Bank to a corresponding number of subscription rights for such New Shares). | ||||||||||||||||||
| Execution of the Share Capital Increase: |
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| Listing of the New Shares: |
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| Timeline: | The Parties shall endeavour to meet the milestones by May 2023 at the latest. | ||||||||||||||||||
| Noteholders’ meeting |
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| Implementation of the noteholders’ resolutions |
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| Closing of the Debt-to-Equity-Swap | As soon as the resolutions of the EGM and the respective noteholders’ meetings have become implementable, the Parties shall take any and all measures to implement such resolutions, in particular, but not limited to:
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E. The Debt-to-Debt Swap
| Settlement Bank: | [same bank as for D2E swap] acting as settlement bank for the Debt-to-Debt Swap („Settlement Bank„). | ||||||||||||||||
| Subscription rights of the Settlement Bank and acquisition rights of holders of 2022 Notes and/or 2023 Notes: |
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| Conversion Ratio | 1:1, i.e., for each 2022 Note or 2023 Note contributed for the share capital increase, the holders of 2022 Notes or 2023 Notes shall be entitled to one (1) New OpCo Note. | ||||||||||||||||
| Listing of the New OpCo Notes: |
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| Timeline: | The Parties shall endeavour to meet the milestones by May 2023 at the latest. | ||||||||||||||||
| Noteholders’ meeting |
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| Implementation of the noteholders’ resolutions |
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| Closing of the Debt-to-Debt-Swap | As soon as the resolutions of the EGM and the respective noteholders’ meetings have become implementable, the Parties shall take any and all measures to implement such resolutions, in particular, but not limited to:
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F. Conditions precedent to the implementation of the Proposed Transaction
| Customary CPs: | To include customary CPs for transactions of this nature, including:
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