Rescue Wetzikon Hospital

On 12 June 2024, GZO AG (“the Company”) defaulted on its CHF 170 million bond and entered into a provisional composition moratorium on 30 April 2024. The Company’s operations remain sound and the business continues to generate positive operating results, however due to a set of unfavorable circumstances, the Company was unable to refinance its obligations prior to the bond’s maturing. The aim of the GZO Creditor Group is to bring together bondholders and other stakeholders to implement a set of proposals aimed at granting the Company the additional time it requires and to facilitate a better solution for all stakeholders – the hospital, the employees, the patients, the shareholders and the creditors of GZO. The current provisional composition moratorium and the threat of a legally binding composition moratorium or bankruptcy of Wetzikon Hospital can be averted with an appropriate package of measures. 

The composition moratorium is not the right process for GZO as it will likely result in the liquidation of the hospital. The market value of the Company’s assets exceeds the outstanding amounts due to creditors by a substantial margin and, consequently, bondholders will not (and should not) accept any haircut proposals.

Please find our valuation here and we would encourage you to read our letter to bondholders which you can find here.