Scope withdraws the D Issuer Rating of Karlie Group GmbH following the opening of insolvency proceedings in December 2016 and lack of information since then.

The rating action follows Karlie Group GmbH’s (Karlie) announcement that it has filed for the opening of insolvency proceedings under its own management (Insolvenzverfahren in Eigenverwaltung) in line with German Insolvency Code.

The rating action follows the announcement of Karlie Group GmbH (Karlie) on 8 November 2016 regarding the opening of insolvency proceedings of two of its wholly owned Belgian subsidiaries, Karlie Flamingo N.V. and Garpet N.V.

B- Corporate Issuer Credit Rating on Karlie Group GmbH (‘Karlie’) has been placed under review for possible downgrade.

Scope raises Germany-based Karlie Group GmbH (Karlie) to B- from Selective Default (SD). The rating action follows the revision of the company’s creditworthiness following the restructuring of Karlie’s EUR 10.1m senior unsecured corporate bond.

Karlie has announced that the payment of the annual coupon for its bond has been deferred to 13 July 2016. Scope’s rating on Karlie remains at Selective Default (SD) until the coupon has been paid.

The rating action follows the majority decision of more than 90% of bondholders at the second bondholders’ meeting held on 30 May 2016 on the debt restructuring of the outstanding EUR 10.1m senior unsecured corporate bond (6.75% p.a.).

Scope Ratings has placed under review for possible downgrade the B Corporate Issuer Credit Rating on Karlie Group GmbH (‘Karlie’).

Credit lines prolonged; cash injection from capital increase; but refinancing risks remain.

Scope Ratings downgrades Germany-based Karlie Group GmbH (‘Karlie’) to B from B+. The rating action is mainly driven by the weak operating development – albeit recovering – and the persistent dependence on external financing. The Outlook remains Stable.