(Bloomberg) -- Adler Group SA vowed that its real estate unit will repay a 400 million-euro ($439 million) bond due in April on time and in full.
The German landlord said it had confirmed the repayment plans after being approached by investors, according to a statement on Wednesday. The senior unsecured notes mature on April 17.
Adler is in the midst of a forensic review of allegations by a hedge fund that has just been extended. An interim report by KPMG hasn't been able to gather enough evidence to refute some key claims made by Fraser Perring's Viceroy Research that Adler engaged in questionable transactions with related parties, Adler said in a statement last week.
Read more: Adler Extends Probe, Says It Hasn't Refuted Key Allegations
The report cleared the valuation of Adler's portfolio of existing homes -- about 40% of which has since been sold -- but disagreed with values for its development portfolio. The differences are being resolved and will not trigger breaches of the company's loan terms, the company said.
The allegations have weighed heavily on Adler since they were made in October even after rival landlord Vonovia SE stepped in to acquire a major stake in the company. Its shares are almost 48% lower than a year earlier, as investors await the outcome of the KPMG report and investigations by Germany's financial regulator.
The company has raised funds to repay the bonds and to bolster liquidity by selling two portfolios of properties.The company is now in the process of selling off some development projects as it looks to raise further funds to meet longer-dated liabilities and to focus on its core markets.
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