Ashurst advised 3W Power S.A., the Luxembourg-based holding company of AEG Power Solutions Group, a global provider of UPS systems and power electronic solutions for industrial, commercial, renewable and distributable energy markets, on its capital increase with subscription rights from authorised capital and a debt-to-equity swap.

The two capital measures are the key elements of the restructuring plan, which 3W Power agreed with the creditors of its €100 million corporate bond in May 2014. The parties had agreed on a debt-to-equity swap of 50 per cent of the outstanding bond nominal value, the issuance of a new €50 million bond and a cash capital increase by contribution of €4 million with subscription rights for current shareholders.

The German restructuring team led by partner Dr Ingo Scholz advised on the financial restructuring of 3W Power, which was brought to a successful conclusion in May 2014. 3W Power had instructed Ashurst following a beauty contest held in autumn 2013.

The Ashurst team advising on the capital measures was led by partner Matthias von Oppen (equity capital markets ECM, rights issue and debt-to-equity-swap) and Dr Tobias Krug (debt capital markets DCM, bond issue), assisted by counsel Dr Gerrit Clasen, associate Joanna Wilczynska-Gluch (both ECM) and Alexandra Heitmann (DCM). Partner Heiko Penndorf and senior associate Felix Krüger covered tax aspects. Advice was also provided by lawyers from London, Paris, Milan and Madrid.