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from Corestate Capital Holding S.A. (isin : LU1296758029)

EQS-Adhoc: Corestate Capital Holding S.A.: Corestate adjusts business strategy and pursues alternative restructuring concept

EQS-Ad-hoc: Corestate Capital Holding S.A. / Key word(s): Restructure of Company/Strategic Company Decision
Corestate Capital Holding S.A.: Corestate adjusts business strategy and pursues alternative restructuring concept

11-Apr-2023 / 14:38 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Corestate Capital Holding S.A.: Corestate adjusts business strategy and pursues alternative restructuring concept

Luxembourg, 11 April 2023 – Corestate Capital Holding S.A. ("Corestate") will consider an alternative restructuring concept ("Alternative Concept") in view of the planned restructuring of the debt instruments. The implementation of this Alternative Concept is in principle independent of the availability of audited financial statements for the financial year 2022, as it pre-empts the preparation of securities prospectuses. In this way, the fact that Corestate has not yet been able to appoint an auditor is mirrored; however, this simplified concept requires more time for implementation. One component of the Alternative Concept is the potential provision of further liquidity ("Bridge Financing"). Under the previous agreement with a group of large bondholders, the so-called Ad Hoc Committee ("AHC"), further EUR 15 million were earmarked upon completion of the restructuring. The concept provides for fresh money to be made available even before the restructuring is completed. It is currently being discussed whether and to which extent the bridge financing of EUR 25 million structured by the AHC in December 2022 should possibly be increased to support balance sheet value potential. In addition to the AHC, talks are also being held with other investors, including from Corestate's shareholder base.

In connection with the Alternative Concept, the business strategy for Corestate Group will be adjusted. This deviates in part significantly from the previous business strategy and planning. These deviations relate, on the one hand, to changes regarding revenues and earnings items. On the other hand, the new strategic restructuring approach envisages that going forward Corestate will focus on the operating business activities of Hannover Leasing, CRM Students, STAM and CORESTATE Bank as well as selected asset management mandates of Corestate boutique. In contrast, co-investments, warehousing assets and other balance sheet assets as well as individual operating units that are not necessary for the core business are to be sold or wound down in a value-maximizing manner.

On the basis of the new business strategy, the Management Board expects revenues of around EUR 90 million and EBITDA of around EUR 25 million in the medium term following the successful turnaround of the Group and in the course of a recovery of the real estate market. In addition, the Management Board plans to repay the debt instruments adjusted and newly issued in the course of the bond restructuring by the end of 2026 through disposal proceeds.

Discussions on the required implementation of the Alternative Concept are currently ongoing. The objective is to reach an agreement on the Alternative Concept in April 2023. The company is continuously reviewing its obligations under insolvency law and currently assumes that it will be feasible to agree on a viable alternative restructuring concept.

Notifying person:
Dr. Kai Gregor Klinger
Chief Markets Officer
T: +49 69 3535630107
M: +49 152 22755400
ir@corestate-capital.com



End of Inside Information

11-Apr-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language:English
Company:Corestate Capital Holding S.A.
4 Rue Jean Monnet
2180 Luxembourg
Luxemburg
Phone:+49 69 3535630-107
Fax:+49 69 3535630-299
E-mail:IR@corestate-capital.com
Internet:www.corestate-capital.com
ISIN:LU1296758029
WKN:A141J3
Listed:Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange
EQS News ID:1604915

 
End of AnnouncementEQS News Service

1604915  11-Apr-2023 CET/CEST

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