EQS-Adhoc: Corestate Capital Holding S.A.: Corestate adjusts business strategy and pursues alternative restructuring concept

Corestate Capital Holding S.A.: Corestate adjusts business strategy and pursues alternative restructuring concept

Luxembourg, 11 April 2023 – Corestate Capital Holding S.A. ("Corestate") will consider an alternative restructuring concept ("Alternative Concept") in view of the planned restructuring of the debt instruments. The implementation of this Alternative Concept is in principle independent of the availability of audited financial statements for the financial year 2022, as it pre-empts the preparation of securities prospectuses. In this way, the fact that Corestate has not yet been able to appoint an auditor is mirrored; however, this simplified concept requires more time for implementation. One component of the Alternative Concept is the potential provision of further liquidity ("Bridge Financing"). Under the previous agreement with a group of large bondholders, the so-called Ad Hoc Committee ("AHC"), further EUR 15 million were earmarked upon completion of the restructuring. The concept provides for fresh money to be made available even before the restructuring is completed. It is currently being discussed whether and to which extent the bridge financing of EUR 25 million structured by the AHC in December 2022 should possibly be increased to support balance sheet value potential. In addition to the AHC, talks are also being held with other investors, including from Corestate's shareholder base.

In connection with the Alternative Concept, the business strategy for Corestate Group will be adjusted. This deviates in part significantly from the previous business strategy and planning. These deviations relate, on the one hand, to changes regarding revenues and earnings items. On the other hand, the new strategic restructuring approach envisages that going forward Corestate will focus on the operating business activities of Hannover Leasing, CRM Students, STAM and CORESTATE Bank as well as selected asset management mandates of Corestate boutique. In contrast, co-investments, warehousing assets and other balance sheet assets as well as individual operating units that are not necessary for the core business are to be sold or wound down in a value-maximizing manner.

On the basis of the new business strategy, the Management Board expects revenues of around EUR 90 million and EBITDA of around EUR 25 million in the medium term following the successful turnaround of the Group and in the course of a recovery of the real estate market. In addition, the Management Board plans to repay the debt instruments adjusted and newly issued in the course of the bond restructuring by the end of 2026 through disposal proceeds.

Discussions on the required implementation of the Alternative Concept are currently ongoing. The objective is to reach an agreement on the Alternative Concept in April 2023. The company is continuously reviewing its obligations under insolvency law and currently assumes that it will be feasible to agree on a viable alternative restructuring concept.

Notifying person: Dr. Kai Gregor Klinger Chief Markets Officer T: +49 69 3535630107 M: +49 152 22755400 ir@corestate-capital.com