GZO AG Creditors Demand Trustee Resignation Over Conflicts

A group of creditors led by Clearway Capital GmbH demands the resignation of trustees overseeing GZO AG's restructuring due to alleged conflicts of interest. Holding 6.56% of GZO's defaulted bonds, Clearway has approached Hinwil's district court for the trustees' immediate removal.

The trustees endorsed a restructuring plan that significantly impacts creditors, offering a 65% to 70% cut on their returns, while municipal shareholders keep full ownership of a debt-free business. This proposal, according to creditors, undervalues potential returns under bankruptcy, as GZO is profitable.

Clearway raises concerns over Ms. Umbach-Spahn's role, citing her marital ties to a municipal council member linked to the case. The creditor group demands the resignations to ensure unbiased resolution.