Sportbahnen Braunwald AG Renovation Wins Approval From Main Creditors & Shareholders
Sportbahnen Braunwald AG has been in a tight financial situation for several years. The efforts to improve the range of products, as well as cost-cutting measures and cost optimization efforts in recent years have gradually borne fruit, but have not been sufficient to secure the future in the long term. The situation with COVID-19 has largely undermined these efforts; instead of a continued improvement in the earnings situation, the situation deteriorated further in the current winter season.
Against this background, the administrative board of Sportbahnen Braunwald AG has developed a restructuring plan for the company. This stipulates that the creditors and shareholders agree to a capital reduction of thirty to one in the sense of a sacrificial symmetry and thus forego 96.67% of their assets or nominal share values. At the same time, the fixed assets are written down in the same proportion. The restructured company is also to receive a capital injection in the form of a share capital increase of CHF 1 million. As part of this capital increase, further anchor shareholders are to be brought on board, whereby the majority of the shares are to be supported more broadly.
With the restructuring, there are also plans to renew the board of directors after a new member was elected last autumn in the form of the managing director André Huser. The long-time Chairman of the Board of Directors Fritz Trümpi (President since 2006) and his son Stefan Trümpi-Althaus (member since 2005) are stepping down for reasons of age and work. The new board of directors will be presented at a later date.
After the majority shareholders agreed to a capital reduction of thirty to one and the Trümpi family agreed to a waiver of their private claims of 96.67% in the amount of CHF 2.7 million, the Glarner Kantonalbank also issued a waiver of claims of 96.67% or 96.67% on March 1, 2021 approved around CHF 4.1 million. At its meeting on March 2, 2021, the government council of the Canton of Glarus also approved a proportionately equal debt waiver of 96.67% for all outstanding investment aid loans from the federal government and the canton of around CHF 3.7 million.
The debt waivers by Glarner Kantonalbank and Canton Glarus are linked to the implementation of the other points of the restructuring plan. These are to be decided at an extraordinary general assembly in spring 2021.
With the presented redevelopment plan, the future of Sportbahnen Braunwald AG, its jobs and numerous other tourism providers in the southern Glarnerland region can be sustainably secured. The redevelopment plan is also a prerequisite for participation in the program for the promotion of core tourism infrastructure approved by the Landsgemeinde in 2018.
Canton Glarus supports the renovation of Sportbahnen Braunwald AG
In favor of the planned balance sheet restructuring and new capitalization of Sportbahnen Braunwald AG, the canton of Glarus is largely foregoing repayment of the outstanding investment aid loan.
Sportbahnen Braunwald AG has been in a very challenging financial position for years. Although it has been able to continuously improve its operating results in recent years, it has shown an operating loss every year. The farm is far from achieving sufficient annual surpluses to ensure sustainable survival. In addition, the company is close to the limit of overindebtedness. The balance sheet of Sportbahnen Braunwald AG must therefore be restructured and put on a healthy basis by means of new capitalization. The two main creditors - the Canton of Glarus and the Glarner Kantonalbank GLKB - make a substantial contribution to this and largely forego the repayment of granted loans and investment aid loans.
Waiver is conditional
The debt waiver in the amount of around 3.7 million francs is tied to the condition that all creditors and shareholders equally waive their claims or share par value and that Sportbahnen Braunwald AG succeeds in recapitalizing. The resolutions required for this are to be passed at an extraordinary general meeting of Sportbahnen Braunwald AG. However, the application to the shareholders to reduce the share capital by 96.67 percent (nominal value from 30 francs to 1 franc) can only be made if, in return, the main lenders waive their claims at the same rate, which is due to today's decision by the government council and the GLKB has happened.
The cantonal investment aid loan and the federal loan to the Gumenbahn were written down two years ago. However, the canton of Glarus is 50 percent liable for the failure of the federal loans that still exist, which in total corresponds to a maximum amount of 920,300 francs. The canton would have to pay this to the federal government, insofar as it insists on its claim.
By waiving the claim, the canton is helping Sportbahnen Braunwald AG to reposition itself and take sustainable future planning in hand. The rehabilitated company can later submit a request for co-financing of core tourism infrastructure, provided that future investment plans provide for this and that such core tourism infrastructure is involved. However, co-financing with funds from the credit line approved by the Landsgemeinde in 2016 requires a separate test procedure, which in particular can document the sustainable survival of Sportbahnen Braunwald AG.
Glarner Kantonalbank makes an important contribution to the balance sheet restructuring of Sportbahnen Braunwald AG
The Glarner Kantonalbank (GLKB) has largely waived the repayment of the loan granted in favor of the planned balance sheet restructuring and new capitalization of Sportbahnen Braunwald AG. The balance sheet of Sportbahnen Braunwald AG needs to be restructured and put on a healthy basis by means of new capitalization. The GLKB makes a substantial contribution to this and largely waives the repayment of the loan granted.
The waiver of claims by GLKB in the amount of around 4.1 million francs is tied to the condition that all creditors and shareholders equally waive their claims or share par value and that the new capitalization of Sportbahnen Braunwald AG succeeds. The value of the GLKB receivable has already been fully written down in previous years, which means that this measure has no negative impact on the current income statement.
