The next steps in the restructuring plan are the implementation of bondholder voting and preparation of an insolvency plan in protective shield proceedings.
Frankfurt – Global law firm Dentons has advised 3W Power S.A. and AEG Power Solutions GmbH on the development and preparation of a new restructuring plan and agreement with key bondholders. The plan comprises the amendment of the terms and conditions of the two bonds issued by 3W Power, subject to formal approval in bondholder votes. In addition, the plan includes the reorganization of the operational German subsidiary AEG Power Solutions GmbH by way of protective shield and debtor-in-possession proceedings. While AEG Power Solutions will likely prepare an insolvency plan within the next three months, the amendments to the terms and conditions of the notes will include the capitalization of future interest payments. The management’s filing for protective shield proceedings was approved on 22 November by the district court of Arnsberg. Dr. Rainer Eckert was appointed as provisional administrator.
AEG Power Solutions provides electronic systems and solutions for power supply systems around the globe. The company earned €119 million in revenues in the first nine months of 2016.
Dentons advised the 3W Power/AEG Power Solutions Group on all legal aspects of the restructuring. Counsel Till Buschmann and his team focused on the bond restructuring, while Partner Andreas Ziegenhagen and Counsel Dirk Schoene focused on the protective shield proceedings. Moreover, Ziegenhagen and Schoene, by way of full power of attorney, are acting together with Jeffrey Casper, who remains in office, as Chief Restructuring Officer for AEG Power Solutions.
In 2014, Till Buschmann acted as lead counsel in advising 3W Power on the conversion of their €100 million bond into equity and into the secured bond existing now.
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