Noratis AG – Board Approves Interest‑Payment Stand‑still as Part of an Extensive Restructuring Plan

Noratis AG (ISIN DE000A2E4MK4, WKN A2E4MK), a German real‑estate investment company listed on Xetra, announced on 11 November 2025 that its board has adopted a comprehensive restructuring concept aimed at restoring financial stability and preserving operational flexibility. The concept includes a temporary stand‑still on the interest payment due on the 5.5 % corporate bond (ISIN DE000A3H2TV6) scheduled for 11 November 2025.

Key Elements of the Restructuring Package

  1. Interest‑Payment Stand‑still
  • The board has formally requested a pause in the upcoming interest payment.
  • This step is intended to free cash for immediate working‑capital needs and to support the company’s liquidity position during the restructuring phase.
  1. Dialogue with Bondholders
  • The e.Anleihe GmbH, the joint representative of the bondholders for the 2020/2028 issue, is actively reviewing the feasibility of a temporary stand‑still.
  • Exchanges between the representative and the Noratis board are underway, with the goal of reaching an agreement that balances the interests of creditors and the company’s long‑term viability.
  1. Haircut Proposal
  • Early reports suggest that bondholders may be offered a haircut as part of the restructuring.
  • While details remain confidential, the prospect of principal adjustment underscores the severity of the company’s liquidity constraints.
  1. Strategic Focus on Core Assets
  • Noratis remains committed to its core portfolio of residential property portfolios, including employee housing and multi‑family estates.
  • The restructuring plan is expected to streamline operations, potentially divesting non‑core assets and optimizing the capital structure.

Market Reaction

The market has responded to the announcement with a modest decline in share price, reflecting investor concerns about the company’s near‑term cash flow. As of 11 November 2025, Noratis shares traded at €0.42, a 22 % drop from the 52‑week high of €1.96, and the company’s market cap sits at approximately €6.5 million.

Forward‑Looking Perspective

The board’s decision to pause the interest payment is a decisive signal that Noratis is prioritising liquidity and operational resilience over short‑term dividend commitments. By engaging directly with bondholders and exploring a structured haircut, the company demonstrates a willingness to restructure its debt on more sustainable terms.

If the stand‑still is approved and the restructuring framework is successfully implemented, Noratis could stabilise its balance sheet, reduce debt servicing costs, and reposition itself to capitalize on favourable market conditions for residential real estate in Germany. The company’s focus on employee housing and multi‑family developments, combined with a disciplined capital management strategy, may well restore confidence among investors and creditors alike.