Positioning for post-COVID future – Update on Restructuring Plan – Creditor Approval Achieved

gategroup Holding AG (“gategroup”, the “Company” and together with its subsidiaries, the “Group”), is pleased to announce that the meetings of (i) the Bondholders and (ii) the Senior Lenders, have each approved the English law restructuring plan, a key part of the financial restructuring designed to position the Group for a post-COVID future.
 
Background
 
As announced on 26 November 2020, the Group, its shareholders, RRJ Capital and Temasek and all of the Group’s bank lenders under the senior facilities agreement dated 30 November 2018 (the "Senior Lenders" and the "SFA", respectively) have agreed to the key terms and conditions of a recapitalisation of the Company and amendment of the terms of the Group’s financial indebtedness (the “Transaction”).
 
On 11 December 2020, the Company and gategroup Finance (Luxembourg) S.A., as issuer of the CHF 350,000,000 3% bonds due 2022 (the "Bonds"), announced that, in order to implement certain aspects of the Transaction, gategroup Guarantee Limited (the "Plan Company"), a wholly owned subsidiary of the Company, had issued a practice statement letter to holders of the Bonds (the "Bondholders") and the Senior Lenders, formally notifying them of the Plan Company’s intention to launch an English restructuring plan under Part 26A of the United Kingdom’s Companies Act 2006 (the "Plan") which will, amongst other things, amend certain terms of the Bonds and the SFA. The practice statement letter is available by registering on the Plan Website at https://glas.agency/investor_reporting/gategroup-en/.
 
On 11 February 2021 a key milestone in the financial restructuring was achieved when the English Court ordered separate meetings ("Plan Meetings") of the Bondholders and the Senior Lenders to take place on 19 March 2021 to consider, and if thought fit, approve the Plan.
 
Bondholders and the Senior Lenders voted to approve the Plan 
 
The Company is pleased to announce a further key step towards the Group’s financial restructuring has been achieved. At the Plan Meetings held on 19 March 2021, the Bondholders and the Senior Lenders each voted to approve the Plan by the requisite statutory majority (being at least 75% by value of the creditors present and voting at the relevant meeting):

• 99.98% by value of the Bondholders present and voting at the Bondholder meeting voted in favour of the Plan; and
   
• 100% by value of the Senior Lenders present and voting at the Senior Lender meeting voted in favour of the Plan.

Next Steps
 
The Plan Company will now seek the sanction (approval) of the Plan by the English Court at a hearing scheduled to take place on 26 March 2021 ("Sanction Hearing").
 
Should the English Court approve the Plan at the Sanction Hearing, it is expected that the Plan will become effective by the end of March 2021 and that the Transaction will complete in April 2021.
 
Xavier Rossinyol, Chief Executive Officer:
 
“We are delighted that the Bondholders and the Senior Lenders have given their support by voting to approve the Restructuring Plan at today’s creditor meetings. Once implemented, the financial restructuring will be another key step to strengthen the Group for the immediate and long term future. The new financial structure will benefit all the Group’s stakeholders: Bondholders, Senior Lenders, shareholders, our customers and our employees and their families. I want to express my gratitude to the Senior Lenders, Bondholders and shareholders for their critical support. Our customers for their continuous trust over all these difficult months, our partnerships are stronger than ever. Our Board of Directors for their guidance and a very special thanks to our employees for fighting day to day to emerge even stronger after this crisis.”

Forward-Looking Statements    

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