Heuking Kühn Lüer Wojtek advises on SeniVita group’s bond restructuring

At the creditors’ meeting held on April 7, 2020, the creditors of SeniVita Social Estate AG’s 2015/2020 convertible bond resolved with a 95 percent majority to extend the term of the bond that was due for repayment on May 12, 2020 to May 11, 2025. SeniVita was legally advised by a team led by Dr. Thorsten Kuthe, Partner at Heuking Kühn Lüer Wojtek.
 
In addition to extending the term, the creditors resolved to increase the bond’s annual interest rate from currently 6.5 percent to 8.5 percent. According to an annual multi-stage plan, only part of the interest will be paid out to adapt the liquidity burden to SeniVita’s performance during the transformation. Due to the current ban on assemblies in Bavaria, the creditors’ meeting was held on the basis of a special permit issued by the City of Bayreuth. Numerous creditors joined the meeting online.
 
SeniVita Social Estate AG is a developer and operator of facilities for the care of the elderly in Bayreuth. The residential complexes are designed according to the AltenPflege 5.0 concept and operated with service partners. The SeniVita model combines the elements of senior-friendly apartments, outpatient care, and modern daytime care in a novel living and care concept. SeniVita group currently operates twelve care facilities.
 
SSE AG had retained Munich-based restructuring boutique One Square Advisors GmbH to draw up the restructuring concept and the medium-term financial planning. The concept was reviewed by auditing firm KPMG as part of an Independent Business Review (IBR) and found to be viable.
 
The team led by Kuthe has already advised SeniVita on several occasions, most recently on issuing two new SME bonds with a total nominal value of EUR 30 million in October 2019.

Counsel to SeniVita Social Estate AG
Heuking Kühn Lüer Wojtek:
Dr. Thorsten Kuthe (Lead, Stock Corporation Law and Capital Markets),
Meike Dresler-Lenz,
Sascha Beck,
Anna Richter, LL.M.,
Madeleine Zipperle,
Miriam Schäfer, all Cologne
Dr. Christoph F. Wetzler, Frankfurt
Dr. Katja Plückelmann,
Dr. Patrick Müller, LL.M. (Bristol),
Tatiana Vorotnitskaya, all Düsseldorf