Branicks bondholders approve restructuring with 99% support, extending maturities to 2038
Key Facts
Holders of Branicks Group's 400 million euro bond approved a restructuring of its obligations with 99% of votes cast, according to a company announcement issued on 20 October 2026. The approval paves the way to extend maturities on financial obligations under the restructuring plan the group agreed with its creditors. The decision followed a vote without a meeting that began on 17 October and ended on 19 October 2026. The company described the outcome as a step that clears the way for implementation of the rescue plan. Josef Schultheis, the group's chief restructuring officer, said the vote represented "a vote of confidence in our rescue plan". The announced approval relates to the bondholder vote, based on the votes cast in that process.
According to Branicks' statement, the restructuring sets a maturity date of 30 September 2030 for obligations worth 375 million euros. It also provides for an additional 220 million euros to mature on 30 September 2038, spreading the obligations covered across different maturities. Alongside the maturity extensions, the original agreement includes arrangements for new bridge financing at both the group and VIB Vermögen levels. The planned bridge financing at Branicks amounts to 35 million euros, under the terms specified in the agreement. The planned bridge financing at VIB Vermögen amounts to 60 million euros and is also subject to the terms of the original agreement. The announced arrangements thus combine the rescheduling of existing obligations with access to new financing on specified terms.
The terms of the original agreement detail interest costs by debt instrument type and repayment seniority. The senior secured principal instruments carry annual cash interest of 7.5%, according to the company's statement on the agreement. The subordinated principal instruments carry annual interest of 15%, with the option to capitalise interest instead of paying it in cash. These subordinated instruments rank behind unsubordinated obligations in repayment priority. They rank ahead of shareholders' equity, however, with the statement specifying that they "rank senior to equity". For the new long-term financing, the original agreement sets a maturity date of 30 September 2029, unless repaid earlier. This financing carries annual cash interest of 10.0%, under the financing terms accompanying the restructuring.
The restructuring was preceded by standstill agreements on promissory note loans with an aggregate nominal value of 87.0 million euros, according to an earlier company announcement. Those loans were due in March and April 2026, and the standstill extended until the end of June of the same year. In its results for the first half of 2026, Branicks reported a decline in interest expenses to 25.6 million euros, compared with 42.0 million euros in the corresponding period of 2025. On governance, the general meeting rejected approval of advisory agreements linked to arrangements for implementing the plan. The group said it had agreed with its main creditors that implementation could proceed despite that rejection. Matthias Danne and Johannes Conradi also accepted their election to the supervisory board, removing an obstacle to implementing the restructuring.
In the next phase, Branicks has committed to preparing and implementing a plan to sell additional assets to reduce debt, under the original restructuring agreement. In its announcement of the voting result, the company said creditor approval would be followed by technical requirements to complete implementation. Those requirements must be met in the coming weeks as part of the remaining steps to complete the agreed arrangements. The group is targeting implementation on 31 December 2026, subject to the remaining conditions being met. It set 31 March 2027 as the announced final deadline for implementation.