Our proposals
We have requested a bondholder meeting with the purpose of proposing the following:
Terms | Rationale |
| Maturity extended by three years (from June 2024 to June 2027) | The company is not financially distressed and continues to generate positive cash flows in addition to the approximately CHF 70 million in liquidity currently on the balance sheet. By extending the maturity, the Company will be better positioned to produce a financial restructuring plan without the risk of bankruptcy. |
| Coupon to be increased by 50bps every six months from 1.875% to 4.875% | By switching to a bi-annual incremental coupon, the Company and the board will be incentivized to reach a solution in a timely fashion |
| GZO’s real estate to be pledged as collateral | GZO AG owns ~58 thousand sqm of prime real estate in Wetzikon that would grant bondholders additional security. |
| Unpaid coupons to be paid immediately | |
| Election of a Bondholder Representative with board observer rights | We believe that it is in the best interest of stakeholders that bondholders elect a representative to observe board proceedings to ensure that, during the three year extension, progress is made towards a definitive solution. We are proposing the election of Gregor Greber, a recognized financial expert. |
To improve coordination among creditors, we ask all bondholders to complete the form below and get in touch. Your support at the bondholders’ meeting is crucial to the success and rescue of Wetzikon Hospital.