AlixPartners supports the Adler Group to achieve the successful sanction of its landmark Restructuring Plan

26 April 2023

LONDON (April 26, 2023) – AlixPartners played a central role in the implementation of Adler’s Restructuring Plan (RP) which has extended near term maturities and secured the injection of new money to stabilize the group and maximize value for stakeholders.

Adler is a large German real estate company with approximately 26,000 residential rental units and a development pipeline of approximately 3,200 units throughout Germany with a combined value of €7.7bn and total debt of €6.3bn. The first step in the implementation was the incorporation of an English company to which Andrea Trozzi and James Westcott, Partners & Managing Directors at AlixPartners, were appointed as directors. The company assumed €3.2bn of senior unsecured notes (SUNs) from the Adler parent by way of issuer substitution, providing the connection to the English court that enabled the launch of the RP to amend certain terms and conditions of the SUNs. AlixPartners worked with Adler and its advisers in the development and implementation of the RP, including providing witness evidence and being cross examined in the High Court of Justice of England and Wales. 

The SUN amendments have resulted in the payment deferral of any SUN maturity or interest until mid-2025 and enabled the Group to be recapitalized with approximately €950m of new money. The sanction of the Restructuring Plan avoided a near term insolvency of the German real estate group. This provides a stable platform from which to sell assets following a period of market recovery in order to maximize value for stakeholders.

This was a highly complex, heavily contested Restructuring Plan which will have a significant bearing on valuation, fairness and recognition considerations in the English courts. The judgment is also likely to reaffirm the position of the English courts as the European restructuring jurisdiction of choice for international companies.

The AlixPartners team, which also included Tom Miller and Simon Greenaway, worked closely with Ben Davies, Christian Pilkington, and Charles Balmain at White & Case, Tom Campbell and Jamie Bolden at PJT, Ruediger Wolf, Jan Lindenberg and Julia Kriegsmann at BCG and Daniel Bayfield, Ryan Perkins and Annabelle Wang from South Square to support Adler through the Restructuring Plan process.

This transaction further demonstrates the ability of AlixPartners’ to provide senior resource to work closely with boards and other advisers in creating and delivering complex balance sheet restructurings.