The investment company Obotritia Capital is in serious difficulties. In early September the company, which is backed by the entrepreneur Rolf Elgeti, had to report a loss. And now the hybrid bond creditors are facing a financial restructuring. The plan is to postpone interest rate step-up dates and creditors' cancellation rights by three years, and reduce the increase rate to 0.25%, as Obotritia has announced. In addition, there is a qualified subordination.

At least the general partner and personally liable partner, Elgeti can count on support. According to the company, the majority of 75% of the outstanding nominal amount required for the restructuring is apparently in the bag. The changes are to be decided by a vote without a creditors' meeting. Obotritia has already attracted attention in the past with the postponement of interest payments. The bond, which is traded over the counter in Frankfurt and has an unlimited term, carries an interest rate of 8.5%. Its price has plummeted since spring 2022 and currently stands at 9% of the nominal amount. The hybrid issuing volume was 227 million euros.

On 5 September, Obotritia had to concede that „at its due discretion“, the loss of more than half of the share capital is to be assumed. In accordance with the Stock Corporation Act, a so-called notice of loss is then due, including the convening of an extraordinary general meeting. The loss essentially results from write-downs on financial assets and marketable securities „after the company has discussed the accounting effects of individual transactions with the auditor“.

Born in 1976, Elgeti made a name for himself as an equity strategist in his younger years at UBS Warburg and Commerzbank in London, and worked as Chief Equity Strategist for the Dutch bank ABN Amro from 2004 to 2007. He then moved into the property business, first as an independent property fund manager and then as CEO of the TAG housing group.

Ten years ago, Elgeti founded the investment company Obotritia in Potsdam, set up the property companies Deutsche Konsum Reit and Deutsche Industrie Reit, and invested in various financial and industrial companies. Among football fans, the property tycoon is known as the saviour of Hansa Rostock: He once granted his home club a crucial loan. Recently, the problems have been mounting. The digital SME financier Creditshelf got into trouble after Obotritia didn't come through with an agreed financing package. At the beginning of February, Creditshelf initiated proceedings for protection from creditors. And last year the Munich-based Bankhaus Obotritia closed its doors.

Elgeti was involved in the Spac boom (Special Purpose Acquisition Company) with the placement of the company shell Obotech, which was later liquidated as no company acquisition materialised. The investment vehicle still owes Deutsche Konsum, which specialises in retail properties for everyday needs, an impressive double-digit million euro amount. Until spring 2023, there was a cash pooling arrangement through which the property group invested its liquidity unsecured with major shareholder Obotritia (28.5%). In December 2023, the parties agreed on a collateral package, staggered partial repayments and full repayment by June 2025 at the latest. It is unclear whether Obotritia will be able to honour this agreement given the current problems. At the end of March 2024, 54.2 million euros were still outstanding.