At last Friday’s extraordinary general meeting, Branicks Group did not approve all of the proposed resolutions, meaning that the restructuring plan announced in late July cannot be implemented for the time being. Branicks states that it is now reviewing the next steps and options. “If no solution can be reached with the company’s major creditors, the company’s continued existence is immediately at risk,” the statement continues. The shareholders—55.19% of the voting share capital was represented at the meeting—rejected agenda item 4, which concerned consulting agreements with Blacklake Management Partners and MDC Matthias Danne Consulting. Consequently, Matthias Danne and Blacklake Managing Director Johannes Conradi stated that they would not yet accept their election to the supervisory board but reserved the right to reject it. Shareholders approved the other three agenda items. These concern the transfer of a large portion of the company’s assets to a new Luxembourg-based company, as well as the reduction in the size of the supervisory board.
The stock has suffered a brutal crash. My guess is that bankruptcy will be averted and the restructuring plan will go through. Therefore, the bet would be that the stock price will rise in the short term and has potential over a 3-year horizon. But I wouldn’t jump in just yet—I’d wait and see, partly because of interest rate trends. What do you think? According to IZ, the consulting contract is “only” for <50,000 €/month—so you wouldn’t find any other expert willing to get the company back on track for that kind of money anyway...
