German real estate is very in vogue in distressed land. In keeping with that trend, German real estate investment firm Corestate Capital is trying to turn its ill fate around through asset sales after finally completed its debt restructuring three months ago. The restructuring deal took a whole year to push through after a lot of back and forth with its bondholders and shareholders.

The deal was implemented consensually with a large majority of its bondholders and shareholders agreeing to the deal, which involved a 78% haircut in exchange for the noteholders taking over 80% of the company. The reinstated debt was extended to mature in 2026.

However, it was not entirely straightforward. After a deal was agreed at the end of last year, the company struggled to find an auditor. It also needed to raise more bridge financing to keep afloat as the restructuring completion took longer than expected.

Corestate’s legal advisors Sven Pruefer and Hauke Sattler from Allen & Overy talk us through what landed the company in this mess, the proposals exchanged and what caused the delay in closing the deal.