3W Power S.A., the holding company of AEG Power Solutions Group announced that bondholders today approved the company's restructuring plan of its EUR100 million corporate bond (ISIN DE000A1A29T7, 3W9A). Today, 41,038 notes with equal number of voting rights, i.e. 41.0 percent of the bond, were present, of which 99.9633 percent voted in favor of the restructuring plan. No bondholder entered an objection on the record. The key elements of the financial restructuring plan are a debt-to-equity swap of 50 percent of the outstanding bond nominal, the issuance of a new EUR50 million bond, a cash capital increase by contribution of EUR4 million (rounded) with subscription rights for current shareholders and the implementation of a management incentive program (MIP).
The MIP will focus on the sustainable improvement of equity value and, therefore, bondholders' recovery. In addition, management developed a comprehensive operational restructuring program. Operational measures comprise divestments of non-core activities, improvements of business processes, headcount reductions as well as focus of business resources on the core UPS business. Many measures have already been implemented.
In a next step, as soon as all legal formalities have been met, shareholders will be asked to vote on the restructuring plan. The Board of Directors of the company and major shareholders fully support the financial restructuring concept. Thereafter, the capital measures will be implemented.
Today's resolution forms a crucial step in AEG Power Solutions' comprehensive financial and operational restructuring program aimed at reducing complexity, focusing the existing business on key areas of core strength and future endeavors on advanced power electronics. With the backing of its financial restructuring from bondholders, the company will now focus its combined efforts on strengthening and growing its industrial and commercial UPS systems and services business and advanced power electronic solutions business with its competitive strengths in mid to high ac-dc power applications and power control technology. Profitability and sustainable cash-flow generation will remain key priorities for the company in its future undertakings.
Dr. Dirk Wolfertz, Chairman of the Board of Directors comments: "We are grateful for the convincing support we have seen today. This is a major step in our global restructuring of the Company. We have made a lot of progress since the end of last year and are confident that we are on the right path." Jeffrey Casper, CRO of AEG Power Solutions added: "Today's resolution sends a strong signal to our business partners. It will restore confidence in our financial stability. Equipped with a sustainable capital structure, AEG Power Solutions will continue to be a reliable high quality supplier of power electronics systems and solutions to the industry."
