Ashurst advised Luxembourg-based 3W Power S.A., the holding company of Dutch AEG Power Solutions B.V. (AEG PS), on an agreement with major creditors of its €100 million corporate bond on essential economic principles of financial restructuring. The agreement is subject to approval required from the upcoming bondholders' meeting to be held on Monday, 9 April 2014, in Frankfurt am Main.

The key elements of the restructuring plan are a debt-to-equity swap of 50 per cent. of the outstanding bond nominal value, the issuance of a new €50 million bond, a cash capital increase by contribution of €4 million with subscription rights for current shareholders, and the implementation of a comprehensive operational restructuring programme.

AEG PS proposed the bondholders to swap the bond nominal value plus accrued interest into 90 per cent. of the equity (contribution in kind) and a new bond to be issued with a nominal amount of €50 million. After dilution through the cash capital increase, bondholders will retain 60 per cent. of the equity. The Board of Directors of the Company and major shareholders fully support the financial restructuring.

The Frankfurt Ashurst team was jointly led by partner Dr Ingo Scholz and senior associate Till Buschmann. They were supported by senior associate Dr Carolin Fenck (all Restructuring). Partner Matthias von Oppen (Corporate Finance) and Dr Tobias Krug (Securities and Derivatives) advised on capital markets aspects, assisted by counsel Dr Gerrit Clasen and associate Joanna Wilczynska-Gluch (both Corporate Finance). Tax partner Dr Klaus Herkenroth also advised.

The AEG Power Solutions Group, headquartered in Zwanenburg in the Netherlands, is a global provider of power electronics systems and solutions for all industrial power requirements. The shares of 3W Power are admitted to trading on the Frankfurt Stock Exchange.