ESPG AG launches restructuring project according to StaRUG due to impending insolvency

EQS-News: ESPG AG / Key word(s): Half Year Results/Capital Reorganisation ESPG AG launches restructuring project according to StaRUG due to impending insolvency 10.09.2024 / 21:40 CET/CEST The issuer is solely responsible for the content of this announcement. ESPG publishes half-year figures and launches restructuring project according to StaRUG

• Revenue increases to EUR 7.9 million (H1-2023: EUR 6.3 million)
• Net operating profit reaches EUR 3.5 million
• EBT of EUR -4.1 million negatively impacted by increased financing costs
• Management Board and Supervisory Board resolve to file a restructuring plan in pursuant to StaRUG
• Investors commit fresh liquidity of around EUR 9.5 million in the event of successful restructuring

Cologne, 10 September 2024: ESPG AG, a property company specialising in science parks, today published financial figures for the first half of 2024. The half-year figures confirm the continued robust development of the science park portfolio in a very challenging property market overall, while the increased financing costs are weighing on earnings and jeopardising ESPG AG's continued existence.

Revenue increased year-on-year to EUR 7.9 million (H1-2023: EUR 6.3 million). This growth is due in particular to successful lettings and inflation adjustments to existing rents. Net operating income reached EUR 3.5 million and thereof increased compared to the previous period H2-2023. Nevertheless, high financing costs, which were higher than in the first half of the previous year, had a negative impact of EUR -4.1 million on EBT. The options pursued to finance the interest payment on the 2018/2026 bond due on 1 October 2024 have not yet been successfully implemented and the Management Board is no longer pursuing them. The Company is therefore at risk of insolvency.

In order to continue the business plan for the further development of the Science Park portfolio and avert existential threats to ESPG AG, a restructuring plan will be filed with the competent local court in accordance with the German Act on the Stabilisation and Restructuring Framework for Companies (StaRUG). Property-holding subsidiaries and the operating business are not affected by this. The restructuring plan shall include a waiver of the creditors, primarily the bondholders, of all claims in return for appropriate compensation. A potential participation of the bondholders participating in the Company's future success will also be considered.