Hengeler Mueller advises consortium of top-tier insurers and asset managers to acquire leading European life insurance consolidator Viridium
19 March 2025
DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”) has amended the terms and maturity of its corporate bond in a consent solicitation process under the German Bond Act (Schuldverschreibungsgesetz). The amendment of the bond terms was part of a comprehensive restructuring solution that was negotiated amongst DEMIRE, DEMIRE's main shareholder and several creditor groups and which resulted in a reduction of the outstanding principal amount of the bond from approximately EUR 500 million to approximately EUR 253 million.
The restructuring includes, in addition to a partial repayment of the bond in the amount of approximately EUR 50 million at nominal value, a repurchase of bonds by DEMIRE as part of a so-called unmodified reverse Dutch auction, which was backstopped by a large group of bondholders by means of a tender backstop. The main shareholder made a financial contribution of just under EUR 100 million to finance the restructuring. The company released additional funds through internal measures. The restructured bond was collateralized via a Double LuxCo structure.
Hengeler Mueller comprehensively advised the ad hoc group of bondholders on the restructuring. The Hengeler Mueller team worked closely together with teams from Loyens & Loeff, led by Ana Andreiana, and Houlihan Lokey, led by Malte Wulfetange.
Hengeler Mueller team for the ad hoc group of bondholders
Restructuring/Finance: Martin Tasma (Berlin), Johannes Tieves (Frankfurt, both partner), Jasper Bothe (senior associate, Berlin/London) (all lead), Arvid Morawe (senior associate, Berlin), Tobias Chowdhury (senior associate, Frankfurt), Hanna Eizenhöfer, Philipp Halm, Katharina Bohdal, (all associates, all Berlin),
Capital markets: Alexander G. Rang (Frankfurt), Kai-Steffen Scholz (Berlin, both partner), Pascal Brandt (senior associate), Dennis Stottmann (associate, both Frankfurt),
Corporate/M&A: Maike Hölty (partner, Berlin), Tobias Alexander Begemann (Berlin), Christian Strothotte (Düsseldorf, both counsel), Tobias Ponßen, Elmar Willemsen (both associates, all Berlin),
Tax: Matthias Scheifele (partner, München), Sebastian Heinrichs (counsel, Frankfurt), Isabella Zimmerl (associate, München).
