A team of Gleiss Lutz lawyers has advised the promissory note creditors of eterna Mode GmbH, an operating company, on eterna Mode Holding GmbH's current financial reorganisation.
On 3 August 2021, the holding company decided to file for a reorganisation procedure to be opened under Germany's Corporate Stabilisation and Restructuring Framework Act (Gesetz über die Stabilisierung und Restrukturierungsrahmen für Unternehmen). In this procedure, the holding company is seeking to restructure and to secure long-term financing.
It has been agreed with eterna Mode GmbH's promissory note creditors that eterna Mode Holding GmbH's current situation and its reorganisation under the Act do not constitute grounds for termination under the promissory note.
The promissory note creditors were advised by the following team of Gleiss Lutz lawyers: Dr Kai Arne Birke (partner, Finance, Frankfurt), Dr Matthias Tresselt (partner, both lead), Friedrich Schlott (both Restructuring, Stuttgart), Alexander Gebhardt (counsel, Finance/Capital Markets, Frankfurt).
eterna Holding's reorganisation is one of the first public cases in which the Corporate Stabilisation and Restructuring Framework Act has been applied. The Act came into force in early 2021 and enables companies to seek reorganisation under a restructuring plan when faced with possible illiquidity which has not yet occurred.
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