Accentro - comment
The devaluation of the equity in the balance sheet should not derail the restructuring discussions underway with the bondholders. However, it is evidence of how poor governance has been at Accentro. The release refers to a €26m devaluation on its own, this would not require a General Meeting to explain, so the issue is more fundamental than that. We expect a significant write-down of the residential assets Accentro purchased in eastern Germany. The 2022 value of the acquired German portfolio assets was €122m, so we expect the bulk of the write-downs will be here, but the size of the total write-down indicates other areas of the portfolios are also taking place. Given we have valued the existing equity at nothing we are not surprised by this. A General Meeting could delay the completion of the restructuring, but management has said it will not impact the discussions with bondholders.
In Q3 23 (the last available accounts), subscribed capital and capital reserves were €112m, and total equity capital was €200m. The statement from the company states that devaluations mean that Equity Capital has now fallen below 50% of share capital => €56m. The implication is a total devaluation over 2023/2024 of €144m. Accentro has indicated that the Investment assets were worth €320m at year-end 2023