ABO Energy Suspends Interest Payment on Bond Amid Restructuring Talks

ABO Energy GmbH & Co. KGaA has announced the suspension of an interest payment on its subordinated bond 2024/2029. The payment, around EUR 3.125 million due on 8 November 2026, is paused amid ongoing restructuring negotiations with key financial creditors. The bond in question carries an interest rate of 7.75% per annum with a principal amount of EUR 80 million.

The decision to halt the payment aims to avoid compromising ongoing discussions for a broader restructuring plan, which involves contributions from bondholders, debt providers, and shareholders. Importantly, the bond's terms do not grant a right to terminate due to non-payment of interest. Operation-wise, ABO Energy assures that its day-to-day activities, including those affecting customers, suppliers, and staff, will remain unaffected.

ABO Energy pledges continued communication regarding further negotiations and updates, compliant with legal obligations.