Mynaric Announces Financial Restructuring Under German StaRUG, Secures New Bridge and Restructuring Loans

February 10, 2025 11:16 PM AEDT | By Team Kalkine Media

Mynaric Announces Financial Restructuring Under German StaRUG, Secures New Bridge and Restructuring Loans — Image source: shutterstock

New Bridge and Restructuring Loans to Maintain Operations

Mynaric has entered into an agreement with its U.S.-based lenders affiliated with Pacific Investment Management Company LLC (PIMCO) to receive a $28 million fourth bridge loan. This loan, in addition to the previously secured $95 million in term loans and $21.5 million in bridge loans, aims to fund ongoing operations until the conclusion of the StaRUG proceedings.

Additionally, Mynaric has secured a $25 million restructuring loan from its lenders. This loan, which bears an 8% annual interest rate and matures on December 31, 2028, is intended to support the company’s production plan and restructuring efforts.

Debt Restructuring and StaRUG Proceedings

Mynaric's management and supervisory board have formally initiated StaRUG restructuring proceedings at the Munich Local Restructuring Court. The restructuring plan includes:

Waiving over $116.5 million in debt, including existing term loans and bridge loans.
A capital reduction to zero, followed by a capital increase without subscription rights for current shareholders.
Exclusive share subscription rights granted to PIMCO’s affiliated special purpose vehicle (SPV), in exchange for its debt waiver and continued financial support.

Shareholder Implications and Potential Delisting

Under the restructuring plan, existing Mynaric shareholders could lose their entire investment. The company warns that the restructuring measures may result in a full delisting of Mynaric once the capital restructuring is legally effective.

Mynaric stated that without these measures, the company would face insolvency by February 2025 due to its high debt burden and deteriorating liquidity. Attempts to secure a traditional refinancing or equity investment were unsuccessful, making StaRUG proceedings the only viable path forward.

The restructuring process is expected to conclude by Q2 2025

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