Latham & Watkins LLP advised DEMIRE Deutsche Mittelstand Real Estate AG, a real estate company with investments in commercial properties in medium-sized cities and up and coming peripheral locations in metropolitan areas throughout Germany, on the initial negotiations for financial restructuring and, in particular, the subsequent capital market law issues as part of a comprehensive restructuring and partial redemption of a corporate bond with an original volume of €499 million (the Bond). In addition to amendments and extensions of the Bond in a procedure under the German Bond Act (Schuldverschreibungsgesetz), the transaction included both a partial redemption of the Bond at par and various repurchases (with subsequent cancellation) of the outstanding Bond as part of a tender offer and under a tender backstop agreement. The total outstanding principal amount of the extended Bond, now bearing interest at 5% per annum, is €253,710,000 after the completion of the transaction.
The Latham team was led by Frankfurt partner Alexander Lentz, Hamburg partner Frank Grell, and Frankfurt counsel Daniel Splittgerber with associate Laura Sophie Neumann, Hamburg partner Dirk Kocher, and Hamburg counsel Andreas Lönner.
