Shareholders at Risk: Spark Networks' Restructuring Raises Alarm

WIRTSCHAFTSWOCHE - Shareholders of the German digital company Spark Networks face potential total loss due to a restructuring plan involving the US hedge fund MGG Investment Group. The plan, facilitated by Germany's StaRUG law, aims to save the financially troubled company outside of bankruptcy proceedings. If approved, MGG would acquire all shares at a nominal price, raising concerns among shareholders about deliberate mismanagement and forced expropriation. The situation reflects broader apprehensions about the StaRUG law's implications for investor rights and the growing trend of restructuring processes that sideline small shareholders in favor of major creditors.

by Florian Weyand
See full article at WirtschaftsWoche

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