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GZO AG Bondholders Back Creditor Proposals Amid Financial Uncertainty

On December 6, 2024, GZO AG's creditor group led by Clearway Capital secured enough votes for extending the maturity of GZO AG's defaulted 1.875% June 2024 bonds. This decision follows an October 25 meeting where proposals were supported, but missed a legally-binding threshold by slim margins.

Bondholders not attending the initial meeting had two months to cast votes. The threshold was met when additional votes were filed, making the proposal binding. GZO AG is exploring options beyond the composition moratorium, scrutinized for potential liabilities.

Clearway Capital's CEO, Gianluca Ferrari, condemned GZO's board, citing risks for the pension funds holding the bonds. They assure stakeholders against detrimental restructuring efforts. The creditor group expressed gratitude for bondholders' support and engagement.

R. P.

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