Germany's Vivacon in acute liquidity crisis, negotiating with banks

Cologne-based listed property group Vivacon has announced that against the background of the ongoing capital market crisis and the difficult market environment, it has encountered an acute liquidity crisis. It is currently negotiating with creditor banks on extension agreements and the opportunity for an extrajudicial restructuring aimed at prolonging financings coming due this year. The concept and planned restructuring envisage short-term fund-raising by sale of assets and possibly investments, as well as further cost reduction measures. Against this background, the company has cut the number of board members and applied for a segment change on the Frankfurt Stock Exchange to the General Standard from the Prime Standard - a move that means it can omit quarterly reporting. Vivacon specialises in high-end residential property, historic building refurbishment, and ground lease concepts.