SOWITEC Calls Second Bondholders Meeting After Failed Vote, Faces Liquidity Pressure

SOWITEC group GmbH has announced that the voting without a meeting regarding the bond 2018/2026 did not reach the required quorum of 50% of the outstanding bond volume, with participation reaching only 12.18%. This outcome necessitates a second bondholders meeting scheduled for October 8, 2025, to be held as a physical gathering in Sonnenbühl. The company published the official invitation in the German Federal Gazette and on its corporate website https://investor.sowitec.com/de/.

The importance of this development lies in SOWITEC's current liquidity constraints and the approaching November 8, 2025 deadline for partial repayment of the bond. The company's liquidity position has been under pressure, decreasing by EUR 3.1 million compared to the previous year to EUR 0.4 million as of December 31, 2024. While liquidity improved to EUR 1.4 million as of July 31, 2025, the figures remain concerning given the upcoming financial obligations.

For the second bondholders meeting, the required quorum is reduced to 25% of the outstanding nominal value. SOWITEC is offering bondholders participating in the meeting a reimbursement equal to 0.5% of their outstanding nominal value, with a minimum payment of EUR 75.00 per deposit. However, this payment is contingent upon reaching the 25% quorum and will only be distributed after the proposed resolutions are implemented. The application form for this participation fee is available for download on the company website https://investor.sowitec.com/de/.

The proposed resolutions, which remain unchanged from the initial voting attempt, include critical measures to address the company's financial challenges. These proposals developed in agreement with SdK Schutzgemeinschaft der Kapitalanleger e.V. involve deferring the EUR 2,290,200 partial repayment due on November 8, 2025 by six months until May 8, 2026. Additionally, bondholders are asked to waive termination rights related to the non-payment of this partial repayment and authorize the joint representative to exercise terminations and temporary waivers.

SOWITEC's ability to manage its debt obligations is further complicated by its ongoing negotiations regarding the sale of an 80 MW partial portfolio in Germany. The company indicated that proceeds from this potential sale would be used to finance the bond repayment. However, any delay in concluding this transaction could exacerbate the liquidity shortage risk. The company emphasizes that the 8% interest payment of approximately EUR 0.4 million due on November 8, 2025 is not subject to the proposed resolutions and will be paid in full and on time.

The outcome of the second bondholders meeting carries significant implications for SOWITEC's financial stability and its ability to navigate current market challenges. Failure to achieve the required quorum and approval of the proposed measures could potentially trigger more severe financial consequences for the company and its bondholders.