Special Report to Bond Holders
On December 3, 2015, we announced that Progroup AG, our subsidiary Propapier PM2 GmbH, EnBW Energie Baden-Württemberg AG (“EnBW”) and certain of EnBW’s subsidiaries entered into a purchase, assignment and transfer agreement for the proposed acquisition by Progroup AG of EnBW Propower GmbH, the combined heat and power plant (the “CHP”) adjacent to our paper mill in Eisenhüttenstadt and certain related assets (the “CHP Acquisition”) for an aggregate purchase price (subject to customary post-closing adjustments) of €183.9 million.
As promised in our letter to investors dated December 3, 2015, you can find more detail about the CHP Acquisition and the economic rationale for the CHP Acquisition under “The CHP Acquistion” in our special report to the holders of our senior secured notes dated December 8, 2015. Although we are confident that the CHP Acquisition will allow us to significantly reduce our energy expenses, the CHP Acquisition also involves certain risks which are described in the special report under “Risk Factors—Risks Related to the CHP Acquisition”. In the special report, you can also find other, up-to-date information about our business, financial condition, results of operation, industry, shareholders, management and financing arrangements.
The CHP Acquisition remains subject to a number of conditions, including approval by the competent cartel authorities, but we hope to be able to complete the CHP Acquisition on or around December 31, 2015.
