The creditors of financially troubled steel scrap recycler Scholz will likely get back a maximum of 11 per cent of their invested capital. In this case, they would receive a first instalment totalling €14m later this year. Above and beyond this, a conditional performance-based premium of €5.8m could be paid out, dependent upon Scholz Holding's earnings before interest, taxes, depreciation and amortisation (Ebitda) for 2016 and 2017, according to Austrian attorney Ulla Reisch.
In return, the creditors holding the bond with a total value of €182.5m would have to waive their remaining capital investment as well as the previously agreed interest. The interest alone, originally due to be paid in March and already deferred until the end of May, would amount to €15.5m.
The conditions are the result of negotiations between Ms Reisch, the court-appointed bond curator, and the banks to whom – as Scholz Holding's "secured creditors" – the offer of a potential new investor has been made.
A detailed report of the Scholz Holding bond negotiations will appear on 25 May in EUWID 11/2016.