DGAP-Adhoc: IVG Immobilien AG: Key elements of a restructuring concept, notice of loss of half of the Company's share capital (para. 92 sec. 1 German stock corporations act)

IVG Immobilien AG / Key word(s): Capital Reorganisation/Restructure of Company

10.08.2013 18:53

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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In the negotiations conducted by IVG Immobilien AG (IVG or Company) and the
representatives of principal creditors affiliated in 'Ad hoc-Committees'
with regard to (i) a loan agreement in the amount of EUR 1,350 million
dated 25 September 2007/13 April 2012 (SynLoan I), (ii) a loan agreement in
the amount of EUR 1,047.4 million dated 12 May 2009/24 February 2012
(SynLoan II), (iii) the bilateral loan agreement in the amount of EUR 100
million dated 30 November 2007/13 April 2013 (LBBW Loan) and (iv) the
convertible bond (ISIN: DE000A0LNA87), the creditors have submitted key
elements of a comprehensive restructuring concept:

By way of a simplified capital reduction to cover losses, the existing
stated share capital shall be, in a ratio of 200 to 1, reduced to 0,5% of
the present stated share capital. Further, it is, inter alia, envisaged
that SynLoan I and the convertible bond will both be transferred to the
company by way of a contribution in kind with 100% of their respective face
amounts (so-called debt-to-equity swap), which would lead to a quota-ratio
of these two creditor groups' share in the stated share capital of 80%
(SynLoan I) to 20% (convertible bond). Furthermore, the restructuring
concept envisages a capital increase for cash with subscription rights for
IVG's present shareholders and - as a compensation for their waiver of
claims - for the holders of the hybrid bond (ISIN: DE000A0JQMH5), or an
economically similar alternative structure, which allows the present
shareholders and the hybrid bond holders, additionally and in a quota-ratio
between them yet to be defined, to acquire 3% of the stated share capital
post contribution in kind and capital increase for cash.

Moreover, creditors of SynLoan I have, on term sheet level, agreed with the
Company on a bridge financing, amounting to approx. EUR 140 million, to
cover the additional liquidity need. The bridge financing would presumably
safeguard the continuance of the Company until the envisaged closing of the
restructuring. Additionally, the prospect of a postponement of the due-date
of payment claims under the LBBW loan was offered. Also, the
representatives of the convertible bond creditors offer the prospect of
support for a postponement of the termination right as of 29 March 2014
(so-called Put Option), if this should become necessary in the course of
the implementation of the restructuring concept.

The Company will shortly assess these results, conduct further negotiations
on this basis and, in case of an overall agreement on a detailed level,
invite to the Company's annual general meeting of shareholders and to an
assembly meeting of the creditors of the hybrid bond, to submit the
comprehensive restructuring concept to the vote of the shareholders and the
creditors of the hybrid bond.

Further, the management board hereby gives notice that the strategic review
of all business divisions and their asset valuations as per 30 June 2013 -
as announced in the ad hoc publications dated 12 and 19 July 2013 -
resulted in a need for book value depreciations in an overall amount of
approx. EUR 350 million (German GAAP), this amount being based on
depreciations in various divisions, particularly including value
adjustments regarding real estate, caverns business, shareholdings and
receivables.

Accordingly, the management board hereby announces that more than half of
the Company's share capital is lost (para. 92 sec. 1 German stock
corporations act).

The half-year report as per 30 June 2013 (as both IVG group's consolidated
and IVG's individual financial statement) will - as announced in the ad hoc
publication dated 19 July 2013 - presumably be published on 26 August 2013.

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Language: English
Company: IVG Immobilien AG
Zanderstr. 5-7
53177 Bonn
Germany
Phone: +49 (0)228 844-400
Fax: +49 (0)228 844-372
E-mail: ir@ivg.de
Internet: www.ivg.de
ISIN: DE0006205701, DE000A0JQMH5
WKN: 620570, A0JQMH
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), München; Freiverkehr in Hamburg, Hannover,
Stuttgart

End of Announcement DGAP News-Service

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