On 17 July 2023, Nuremberg-Fürth Regional Court dismissed all immediate appeals filed against Nuremberg Restructuring Court's ruling confirming LEONI AG's restructuring plan, which is now legally binding.
A Gleiss Lutz team has been advising Leoni Kabel GmbH and its Wire & Cable Solutions (WCS) and Wiring Systems Division (WSD) subsidiaries since 2019, and LEONI AG since January 2023 on preparing and launching a group-level procedure under the Corporate Stabilisation and Restructuring Framework Act (Unternehmensstabilisierungs- und -restrukturierungsgesetz, “StaRUG"). It is the first major restructuring in Germany to extensively apply the newly established StaRUG procedure.
Nuremberg Restructuring Court had previously confirmed the restructuring plan on 21 June 2023 following its approval with the required majorities at a dedicated meeting on 31 May 2023.
March 2023's restructuring plan includes a reduction of LEONI AG's share capital to zero euros as part of the financial restructuring. This will lead to an exit of the existing shareholders and a delisting of the LEONI share. Once implemented, the additional capital measures under the restructuring plan will provide LEONI AG with fresh liquidity from a capital increase – excluding subscription rights – of EUR 150 million, and relieve it of financial liabilities totalling EUR 708 million.
Our advice on the StaRUG procedure was provided in close cooperation with a Latham & Watkins team led by Dr. Jörn Kowalewski (partner, Restructuring, Hamburg).
The following Gleiss Lutz team advised LEONI AG and its German subsidiaries: Dr. Matthias Tresselt (lead, partner, Stuttgart), Dr. Markus Reps (counsel, both Restructuring, Frankfurt), Dr. Helge Kortz (partner), Dr. Jan-Alexander Lange (counsel, both Banking & Finance, both Frankfurt), Martin Wernicke (Restructuring, Stuttgart).
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