Vienna Higher Regional Court decides: Eyemaxx securities remain valid!

Vienna Higher Regional Court decides: Eyemaxx securities remain valid!

On May 28, 2025, there was a significant legal dispute concerning the Eyemaxx 2020/25 bond. In a ruling, the Vienna Higher Regional Court rejected the appeal of Lifestyle Real Property Verfassungsgesellschaft mbH & Co KG. This appeal was directed against a decision by the Korneuburg Regional Court, which confirmed the effectiveness of the security order for a property in Innsbruck in favor of the bondholders on September 27, 2024. The Bond Guide reports that the insolvency administration of the bond issuer initiated this process and took two main arguments to court.

On the one hand, the argument that the return of deposits was prohibited was put forward, but this was refuted by the Vienna Higher Regional Court. It found that there was no violation of the law in this case. On the other hand, the insolvency administration wanted to challenge the handling of the transfer of liens. It was argued that securities on superimposed assets should be treated like liens on movable property. But the Higher Regional Court also rejected this argument. However, it did allow for an appeal on the question of whether a charge on a superestate can be transferred like a charge on property. However, the judgment is not yet final.

What does this mean for bondholders?

The outcome of this process has a direct impact on the Eyemaxx 2020/25 bond, which is currently quoted at the same level as its unsecured sister bonds. If the collateral order remains in place, this bond could achieve a significantly higher valuation. According to One Square Advisory, bondholders have the opportunity to register through a form and ask questions to better understand their rights.

It is worth noting that Eyemaxx Real Estate AG filed for bankruptcy on November 4, 2021, which was approved on November 5. Dr. Ulla Reisch was appointed bankruptcy administrator. A restructuring plan was presented with the insolvency application, but this had to be withdrawn on December 17, 2021 due to the insolvency of a subsidiary. The vote on the restructuring plan was consequently canceled.

A look at the bankruptcy process

As stated in the WKO Insolvency Law, the application to the responsible regional court in an insolvency case is usually made within 60 days of insolvency or over-indebtedness. In order to initiate the procedure, either there must be sufficient assets to cover the costs or an advance on costs of up to 4,000 euros must be provided. If this is not the case, the court can reject the application.

A restructuring plan can be drawn up during the process, whereby creditors must be offered a quota of at least 20% within two years. If this plan fails, bankruptcy proceedings will be initiated and the insolvency assets will be liquidated. These processes are of great importance for the creditors and the further development of the company.

Overall, the Eyemaxx legal disputes involve numerous challenges and uncertainties that are of great interest to both investors and the affected creditors. It remains to be seen how the legal disputes surrounding the Eyemaxx 2020/25 bond and its collateral will continue.