A landmark judgment upholding the rights of US bondholders in one of Europe’s biggest real estate disasters should resonate widely. It’s a warning to struggling companies that they must treat creditors fairly when seeking to restructure their debts – and can’t ride roughshod over minority objectors.

Adler Group SA wants time to sell off its assets in an orderly manner and repay its borrowings. There’s broad agreement that liquidating its sprawling portfolio of German properties is the most realistic course. The Luxembourg-based company, which was the subject of a high-profile attack by short-seller Viceroy Research in 2021, has net debt of €6.3 billion ($6.9 billion), equivalent to 89% of the value of its real estate assets.

QOSHE - Adler Bondholders Replace One Mess With Another - Chris Hughes
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Adler Bondholders Replace One Mess With Another

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02.02.2024

A landmark judgment upholding the rights of US bondholders in one of Europe’s biggest real estate disasters should resonate widely. It’s a warning to struggling companies that they........

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