Corporate | 11 February 2010 15:03
HCI Capital AG / Restructure of Company
11.02.2010 15:03
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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HCI Capital AG: Restructuring secures liquidity, safeguards long-term
perspectives
* Moratorium covering material guarantees and indemnities
* Comprehensive agreement joined by all banks involved
Hamburg, 11 February 2010 - HCI Capital AG, one of the leading independent
issuing houses for closed-end funds, reached an important milestone in its
efforts to overcome the crisis in the current challenging market
environment. The company has agreed upon a comprehensive restructuring
concept with its creditor banks. The concept is designed to secure HCI
Group's financial position and liquidity. The restructuring provides a
sound foundation for HCI Group to continue its investment funds business,
allowing the Group to tap extensive market potential.
The concept includes the following key elements:
* a long-term moratorium, covering the period until 30 September 2013,
covering all material contingent liabilities (guarantees and indemnities)
HCI Group has extended vis-à-vis banks;
* the intention to cancel these contingent liabilities;
* the conversion of the Group's existing borrowings into long-term
facilities, or into equity;
* a EUR 22 million capital increase once the contingent liabilities have
been cancelled.
'The restructuring concept we have developed for HCI Group is the first of
its kind in this sector. It underscores the trust banks are placing in the
Group's potential', said Dr Ralf Friedrichs, Chairman of the Management
Board of HCI Capital AG. He added that the concept provides a sound
foundation for HCI Group's business, and for allowing the Group to expand
its market position in initiating and managing investments in tangible
assets.
HCI Group to be relieved of contingent liabilities
The purpose of the moratorium, and the planned cancellation of contingent
liabilities, is to relieve HCI Group of all material indemnities and
placement guarantees vis-à-vis banks. HCI Group had assumed these
contingent liabilities predominantly in the context of financing the
acquisition of ships. Under the moratorium, creditor banks have undertaken
not to draw on the contingent liabilities until 30 September 2013.
The plan is to irrevocably cancel the contingent liabilities covered by the
moratorium by 28 April 2010, which also will give banks a compensation
claim in the aggregate amount of EUR 12.5 million, which will only become
due after the complete cancellation of the contingent liabilities and is
also subject to achieving certain profitability and liquidity thresholds.
Liquidity to be secured through capital increase against cash contributions
and conversion of bank loans
To secure the Group's liquidity, a EUR 22 million capital increase against
cash contributions is planned after cancellation of the contingent
liabilities.
HCI Group had already reached an agreement to defer payments on bank loans
amounting to approx. EUR 36 million (plus interest) until the end of 2010.
The restructuring concepts provides for a conversion of deferred borrowings
into equity, or into long-term loan facilities. To the extent that banks
will exercise to convert their loan claims into equity, HCI Capital AG has
undertaken to utilise the existing authorised capital of EUR 6 million to
the extent required (in full if necessary) to issue up to 6 million shares
to the requesting banks against contribution of the respective banks' full
claims against HCI Capital AG.
The restructuring agreement with the banks is subject to various
conditions, including the participation of the Group's two major
shareholders, MPC Capital AG and Döhle Group, in the restructuring measures
agreed upon. Both major shareholders have welcomed the restructuring, and
have expressed their full support. HCI Capital AG therefore expects the
conditions precedent for the restructuring agreement to be fulfilled.
Whilst the majority of contingent liabilities will be covered by the
moratorium with immediate effect, the inclusion of contingent liabilities
in the amount of approx. EUR 140 million is subject to the financial
restructuring of a single shipping project. The restructuring of this
project has already reached an advanced stage.
Future competitiveness of HCI Group as a cornerstone of the restructuring
concept
The restructuring became necessary following the severe pressure shipping
markets have been experiencing in the wake of the crisis affecting
financial markets and the global economy; the Group's risk exposure
increased as a consequence. HCI Group has been conducting negotiations with
the banks involved since the autumn of 2008, with a view to devising new
financing solutions for the Group's pipeline of ships on order. The concept
the parties have now agreed upon is based on a full analysis of HCI's
shipping projects and business prospects.
About HCI:
Established in 1985, the HCI Group creates closed-end funds and investments
with a capital guarantee, in the areas of Transport & Logistics, Energy &
Commodities, Real Estate, and Secondary Life Insurance. More than 122,000
clients have invested approx. EUR 5.9 billion in 508 issues, with an
investment volume totalling more than EUR 14.8 billion (figures as at 31
Dec 2009), making HCI one of the leading independent issuing houses in
Germany. HCI Capital AG has been listed on the stock exchange since October
2005.
Contact:
HCI Capital AG
Dr. Olaf Streuer
Head of Corporate Communication / Business Development
Tel: +49 40 88 88 1 1100
olaf.streuer@hci-capital.de
11.02.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: HCI Capital AG
Burchardstraße 8
20095 Hamburg
Deutschland
Phone: +49 (0)40 88881-0
Fax: +49 (0)40 88881-199
E-mail: ir@hci-capital.de
Internet: www.hci-capital.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, München, Hannover, Düsseldorf,
Stuttgart
End of News DGAP News-Service
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