New start for AHBR requires drastic action - Corealcredit Bank AG
New start for AHBR requires drastic action - Corealcredit Bank AG
New start for AHBR requires drastic action - Corealcredit Bank AG
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
PRESS RELEASE<br />
<strong>New</strong> <strong>start</strong> <strong>for</strong> <strong>AHBR</strong> <strong>requires</strong> <strong>drastic</strong> <strong>action</strong><br />
<strong>AHBR</strong> continues with adjusted business model /<br />
Negative annual results expected <strong>for</strong> 2005<br />
Frankfurt / Main, 2 January 2006<br />
The takeover of Allgemeine Hypotheken<strong>Bank</strong> Rheinboden <strong>AG</strong> (<strong>AHBR</strong>) by US<br />
financial investor Lone Star has been finalised. The final phase of the trans<strong>action</strong>,<br />
announced on 8 December 2005, was completed much earlier than expected. As<br />
a result, the new owner "LSF5 German Investments, L.P." now holds 87.9 per<br />
cent of <strong>AHBR</strong> shares. Lone Star holds a call option, exercisable at any point, on a<br />
further 12 per cent, which are still held by <strong>for</strong>mer majority shareholder<br />
Beteiligungsgesellschaft der Gewerkschaften <strong>AG</strong> (BG<strong>AG</strong>). The remaining 0.1 per<br />
cent of shares are held in free float.<br />
Revaluation of interest rate positions and loan portfolio<br />
<strong>AHBR</strong> will undergo systematic restructuring following the now completed<br />
takeover by Lone Star. This will be reflected by a new business model to be<br />
presented in January 2006. In the course of the <strong>Bank</strong>’s repositioning losses on<br />
charged interest rate positions will be completely realised and the loan portfolio<br />
will be revaluated. This will already impact the 2005 annual financial statements.<br />
Compared with previous years, significant corrections will be made in order to<br />
ensure a sound financial basis <strong>for</strong> the <strong>Bank</strong>’s future operations. Substantial<br />
expenditure <strong>for</strong> the final settlement of existing debts, which had previously been<br />
spread over future years, will lead to a significant shortfall in 2005.<br />
Losses <strong>for</strong> profit participation certificates and silent partnerships<br />
The anticipated deficit, currently expected to be in a size between EUR 1.1 and<br />
1.3 billion, will not just lead to a reduction in reserves, but also to significant calls<br />
on silent partnership investors and holders of profit participation certificates. The<br />
liable equity capital provided by them will proportionally participate in a balance<br />
sheet loss, according to applicable terms. The precise amount of any claim can<br />
only be determined once the annual financial statements have been established.<br />
Allgemeine Hypotheken<strong>Bank</strong> Rheinboden <strong>AG</strong> . Bockenheimer Landstraße 25 . D-60325 Frankfurt / Main .<br />
Tel.: (+49-69) 71 79-0 . Fax: (+49-69) 71 79-100 . www.ahbr.com . info@ahbr.de
Recapitalisation by new owner<br />
PRESS RELEASE<br />
Lone Star will support the repositioning of the <strong>Bank</strong> by providing an appropriate<br />
injection of equity capital. This will allow <strong>AHBR</strong> to make a new financial <strong>start</strong>,<br />
while securing outstanding claims by creditors of Pfandbriefe as well as senior<br />
unsecured and subordinated registered and bearer bonds.<br />
Liquidity situation stable<br />
The takeover of <strong>AHBR</strong> by Lone Star is tied to a scheme <strong>for</strong> safeguarding liquidity.<br />
This will ensure the comprehensive and timely servicing of outstanding debt,<br />
except from profit participation certificates and silent partnerships.<br />
Contacts:<br />
Markus Esser Anke Driesnack<br />
Phone: (+49-69) 7179-544 Phone: (+49-69) 7179-461<br />
Fax: (+49-69) 7179-506 Fax: (+49-69) 7179-506<br />
markus.esser@ahbr.de anke.driesnack@ahbr.de<br />
Allgemeine Hypotheken<strong>Bank</strong> Rheinboden <strong>AG</strong> . Bockenheimer Landstraße 25 . D-60325 Frankfurt / Main .<br />
Tel.: (+49-69) 71 79-0 . Fax: (+49-69) 71 79-100 . www.ahbr.com . info@ahbr.de