Confirmed: The doner loan threatens total failure. As BaFin announces, filed for bankruptcy. Finance had received money as a subordinated loan from German investors willing to invest. Originally, the capital thus obtained was to be used to finance kebab restaurants in the United States.
The adventure started with . Later, it was renamed . BaFin has now published a mandatory report pursuant to § 11a (1) that filed for bankruptcy on 10.08.2018 .
The had the goal to open kebab restaurants in the USA. To finance its project, the current has issued two subordinated loans. In the years 2015 to 2017, German investors accepted tranches and invested capital.
High interest rate promise for subordinated loans
For the subordinated loans, praised high interest rates. The first subordinated loan from the end of 2015 promised investors an interest rate of 8%. The term of the loan should be three years. The second loan was issued at the same time. It had a longer term of five years and even promised 10% interest. It must be said that the prospectuses of both loans were previously audited and approved by BaFin.
Bankruptcy in the USA
The company’s filing for bankruptcy is related to the bankruptcy of its sister company in the United States. This is the Mediterranean , formerly known as Mediterranean Grill . Since the US sister can no longer make payments to the German , is no longer able to service the subordinated loans granted by the German investors with interest payments, let alone repay them.
BaFin stated that the Mediterranean has not generated any relevant sales in the US for months, nor does it raise additional equity or debt to pay its debts. Thus, the regular business operations of Mediterranean in the US is no longer possible.
No bankruptcy estate
As BaFin further informs, there is no bankruptcy estate at . As a result, all loans granted to will be canceled in full .
However, the liquidity bottlenecks of are not new and have been known for months. Already in December 2017, all payments by to its lenders – the German investors – were suspended. This concerned both interest payments and repayments. The public offer was also terminated at the beginning of December 2017.