Paragon GmbH & Co. KGaA announced it will conduct a second bondholders meeting in person on December 19, 2025, following the failure of a written vote to reach the necessary participation quorum for proposed adjustments to its bond terms. The company had presented bondholders of its EUR bond [ISIN: DE000A2GSB86 / WKN: A2GSB8] with the issuer's proposal for a vote without a meeting from November 27 to 29, 2025. Participation reached only 3.00% of the total outstanding bonds, clearly missing the required threshold for approval through the written procedure.
The second meeting is scheduled for 10 a.m. at the company's headquarters in Delbrück, specifically at the Hotel Waldkrug, Graf-Sporck-Strasse 34, 33129 Delbruck. A participation fee will be provided to attendees. Prior to this formal meeting, Paragon, together with the SdK - the German Shareholders' Association - will host another informational event, for which a separate invitation will be distributed to bondholders. Klaus Dieter Frers, founder and CEO of the personally liable partner of paragon GmbH & Co. KGaA, stated that the outcome of the first vote was not surprising given the circumstances.
Frers expressed expectation that discussions with investors' protection associations and major bondholders would lead to broad approval at the second creditors' meeting scheduled for December. This development is significant as it underscores the challenges companies can face in obtaining bondholder consent for financial restructuring outside of formal, in-person gatherings. The low participation in the written procedure suggests bondholders may prefer or require the forum of a physical meeting to engage with the proposal, potentially impacting the timeline and process for implementing any changes to the bond terms.
The outcome of the December 19 meeting will be crucial for Paragon's financial strategy regarding this specific debt instrument, as bondholder approval is necessary for any modifications to the existing terms. The situation illustrates how corporate debt restructuring processes can encounter procedural hurdles when attempting to use alternative voting methods, even when companies provide detailed information through official channels like new media distribution platforms. The company's approach to engaging with bondholder representatives and major investors ahead of the second meeting reflects standard practice in German corporate finance when seeking approval for significant financial adjustments.
