Home News Berggruen and Valovis agree – credit is to be replaced

Berggruen and Valovis agree – credit is to be replaced

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2010-07-09_Karstadt_ddp

FRANKFURT / FOOD (Dow Jones) – The potential investor Karstadt Nicolas Berggruen is a further step in the struggle to take over the bankrupt department store chain progress . The Bank has now Valovis reached an agreement in separate meetings of the disputed points, as both sides announced on Tuesday. ( Reuters photo 🙂

The solution found by both sides but in return, again conjures up problems with the landlord High Street consortium that owns the majority of Karstadt’s real estate. What is agreed is now on the rental terms. The Valovis bank belonging to the Karstadt department pension fund , has co-financed with a loan of 850 million EUR to the High Street consortium acquiring 53 Karstadt objects and had to agree to reductions.
The now negotiated solution with Berggruen also provides that Valovis withdraw as a donor . The 2014 loan due to be replaced prematurely. This would circumvent the problem of Mietdienstbarkeiten how Valovis a spokeswoman said. Berggruen will register the proposed Mietreduktionen in the land , which could develop into a supervisory Valovis problem. The low rents would in the case of insolvency or the resale of Karstadt persist. For the Bank , which sees its commitment yet sufficiently secured by first ranking mortgages , it would have claims to the risk of "significant impairment "of the property brought with it .
Is open now but the question of "how "of the financing of the loan. It now lacks of any rules to a " speedy, early replacement of expiring not later than 2014 loan by the High Street Consortium , "explained Valovis and Berggruen. This should by common opinion of both parties to a " proper balance between risk and High Street as owners come to the prospective tenant Berggruen . "All the negotiating parties hope that this funding issues are resolved in the short term by the High Street consortium. "
So that the ball is now back with owners consortium agree that the plan must . A High Street spokesman said they would review the matter. So far it has not been discussed with the consortium on the loan. In a written opinion , criticized the High Street approach: It is " once more " a deal was announced, " which is not . " The crucial question of the announced solution requires that one third of the loan Valovis Bank " overnight " loosens . "So far, Mr. Berggruen has not yet confirmed that he is willing , "it said of High Street. Next criticized High Street, Berggruen had provided still no sustainable and future-oriented approach to store Karstadt.

– By Natali Schwab , Dow Jones Newswires, +49 69 29725119 , natali.schwab @ dowjones.com

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