Shortly after deciding to delist from the NYSE, Signa Sports United (SSU) announced that it had received a termination notice regarding the unconditional equity commitment letter from Signa Holding GmbH, a privately held Austrian real estate and retail company and a subsidiary of the company’s largest shareholder, Munich-based Signa International Sports Holding GmbH.
SSU had entered into a binding equity commitment letter on June 26, 2023, in which Signa Holding unconditionally committed to provide SSU with additional liquidity in the amount of €150 million during the period from Sept. 1, 2023, to Sept. 30, 2025, supplemented by a side letter dated Sept. 27, 2023, to meet SSU’s operational financing needs and to ensure SSU’s ability to continue as a going concern. Of the original commitment of €150 million, €143 million has not been drawn down to date.
Signa Holding terminated the equity commitment letter on Oct. 16. In response, SSU wrote in a press release: “After many years of mutually trusted collaboration and reliable financing between the company and Signa Holding, SSU has relied on the binding and unconditional nature of the Equity Commitment Letter to continue to draw funds to meet its near-term obligations and for its going concern assessment of the company and its subsidiaries. The company considers the termination of the Equity Commitment Letter by Signa Holding unjustified.” The company further stated that while it regrets the termination of the Equity Commitment Letter, it will take the appropriate legal action in the interest of all shareholders, creditors and employees.
