The German technical rental firm grovers near the restructuring agreement in court

(Bloomberg) -Grover Group, electronics rental business, is closer to a restructuring agreement that will see that some creditors start taking over the majority of the shares of the German. Investors led by Fasanara Capital and M&G are planning to spray € 30 million ($ 34 million) to € 35 million to fresh funds and thus take over most of the equity, according to people familiar with the matter. Existing shareholders will retain a stake of between 5% and 10%, people said. A portion of the existing debt will also be subordinate, said separate people known. The restructuring agreement needs another final decision to go through. The company’s debt is reviewed using a so-called Starug process, named after a by-law that came into effect in 2021. This enables companies to restructure more easily by giving courts the power to implement a plan, even if it does not have permission from all groups of stakeholders. While three interested groups approved the agreement with a majority of 75%, the current owners did not. It is now on the court to decide whether the opposition of the owners should dominate. The company, which specializes in renting electronics such as smartphones and tablets to consumers, has refused to comment while the restructuring process is underway. Spokesmen from M&G and Fasanara declined to comment. Without emergency funding, the troubled German boot is facing. Fasanara Capital said late last year that it could end an agreement to offer liquidity if shareholders could sell back a plan to sell the company back to the founder. Founder Michael Cassau sought financing from Fortress Investment Group to finance a possible agreement, which can still be considered after the court process, some of the people said. A fortress spokesman did not immediately respond to a request for comment. The investor fight places Cassau against the management of the company and Fasanara over the control of the startup that was valued at more than $ 1 billion in 2022. Grover does not provide enough income to cover its obligations and its business value covers less than half the outstanding debt, Fasanara said in a December letter. Higher interest rates and increasingly rare venture capital financing have led to a number of clashes in the boardroom at European startups this year. A feud at the insurance technical firm Wefox Holding AG has led the interim CEO to be supported by its largest investor, Mubadala Investment Co., and Mubadala took full control of tiring loyalist, as after a power struggle at the Turkish delivery service for groceries. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP first published: 17 Apr 2025, 09:01 IST