Help save the 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. Despite this, the Company’s operations remain sound, and the business continues to generate positive operating results. Clearway Capital, together with a group of co-investors (collectively “the GZO Creditor Group”) is seeking to bring together bondholders and other stakeholders to implement a set of proposals aimed at granting the Company the additional time it requires to implement a permanent financing solution and to facilitate a better outcome 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 bankruptcy of the Wetzikon Hospital can be averted by implementing a set of actions to repay creditors. 

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.

We have called a bondholder meeting which will be held on October 25th to vote on an extension of the maturity of the bonds to provide the Company with additional time. You can find our proposals listed here.

Please find a detailed presentation of the situation here and we would encourage you to read our letter to bondholders which you can find here.