As part of the ongoing restructuring process, PANDION Real Estate GmbH has concluded an agreement for a debtor-in-possession loan with Arvo Investment Holdings S.à r.l. The financing volume amounts to around five million euros and is intended to ensure the continuation of day-to-day operations for both the company and its parent company, PANDION AG. Both companies are currently in preliminary insolvency proceedings under self-administration.
The financial resources will not be disbursed as a lump sum, but rather phased across ten separate instalments. Each payout is tied to specific contractual conditions agreed between PANDION Real Estate GmbH and the lender. The competent insolvency court, the preliminary insolvency monitor, and the preliminary creditors committee have already officially granted approval for entering into this estate liability.
Structuring and consolidation of operational units
In parallel with securing liquidity, the PANDION Group is implementing a consolidation at the level of its operating legal entities at the turn of the month. PANDION Real Estate GmbH, which holds the lead position within project development and owns substantial shares in the individual project companies and plots of land, is fully integrating the project management and design divisions into its own corporate structure.
Following this consolidation, PANDION Real Estate GmbH is taking over all staff members of PANDION Projektmanagement GmbH and PANDION Design GmbH who are not currently under notice. As a result, operational activities will cease for the two previously independent companies. Consequently, the application for self-administration for these entities is being withdrawn, whilst the underlying petition to open insolvency proceedings remains in place.
Continuation of preliminary self-administration
The remaining core divisions of the real estate developer continue unchanged in preliminary self-administration proceedings. This concerns the listed group parent PANDION AG, whose corporate bond trades under ISIN DE000A289YC5, as well as PANDION Real Estate GmbH, PANDION Engineering GmbH, and PANDION Vertriebsgesellschaft GmbH. Oversight of all these self-administration proceedings remains with the court-appointed preliminary insolvency monitor, Prof. Dr Torsten Martini.
