German Court Goes Against UK Restructuring in Berlin Project (1)

A Frankfurt court has conditionally ordered a Berlin real estate project developer to repay a creditor, in a move that goes against a debt-restructuring deal approved by UK courts last year.

The ruling relates to a €5 million ($5.8 million) investment by Kassenärztliche Vereinigung Hessen in senior loans to finance Project Fürst, a sprawling Berlin development. The debt was due to mature in November 2023, but under a deal agreed in the UK last year, the maturity was extended.

The Frankfurt Regional Court ruled that the UK plan won’t be recognized in Germany and ordered the project companies to repay ...