euro adhoc: Fortune Management Inc.
Financially Distressed Companies /
Restructuring term sheet signed with holders representing the majority of the
Bonds and Loan Notes of Fortune Management Inc.
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
17.06.2008
Zug/Switzerland, 17 June 2008 - FORTUNE Management Inc. (General
Standard, ISIN USU026281027; SIN: A0BLYY) announces that it has
signed a non-binding Term Sheet with Bondholders and Loan Noteholders
representing the majority of its Partial Bonds and Loan Notes that
sets out key terms of a proposed restructuring of the Fortune
Management Group ("FMI"). Under the proposed terms, the Bonds and the
Loan Notes with a face value of EUR 103 m will be exchanged by the
Bondholders and Noteholders for a beneficial interest in a
restructuring trust under the governance of representatives of the
Bondholders and Noteholders.Under the proposed terms, the biodiesel group GATE will be transferred out of FMI completely and will be restructured under the leadership of Alvarez & Marsal, a leading global restructuring and turnaround management firm. The majority of GATE´s equity will be held by the restructuring trust. The trust will further hold 100% of FMI´s wealth management operations and a EUR 45 m bond as well as EUR 5 m face value preferred shares. In addition the trust will receive 40 m of common shares of FMI. All proceeds flowing into the trust will be paid to the Bondholders and the Noteholders in a pre-agreed distribution ratio. Any Bondholder or Noteholder that holds warrants originally issued in conjunction with the Bonds or the Notes will receive the underlying number of shares of common stock.
The new debt will have a term of 10 years and will accrue interest until cash flow from operations is sufficient to pay interest in cash. As a result of the restructuring of FMI, representatives of the Bondholders and Noteholders will join the Board of Directors of the company and form a new Executive Committee. Key management has agreed to be paid 50% of their salaries in shares for the remainder of 2008.
The actual implementation of this complex restructuring is highly dependent on numerous conditions to be fulfilled in a limited timeframe, such as the execution of a legally binding Restructuring Agreement and numerous additional material agreements, and as such, there can be no certainty that these conditions can be met.
Profile of FORTUNE Management Inc.: FORTUNE Management Inc., Zug/Switzerland, is a publicly listed private equity firm. Its two business divisions are Private Equity Management and Principal Investments. The company´s shares (ISIN: USU 026281027) are listed in the General Standard segment of Frankfurt Stock Exchange (symbol: FMI1) and on the DIFX in Dubai.
end of announcement euro adhoc
Contact:
Thomas Luber
FORTUNE Management Inc.
Phone +49 69 9441 8069
IR@fortune-management.com
Bahnhofstrasse 10
P.O. Box 324
CH-6301 Zug
Branche: Financial & Business Services
ISIN: USU026281027
WKN: A0BLYY
Börsen: Börse Berlin / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Frankfurt / regulated dealing/general standard