Signa Sports United N.V. (SSU), which in early October announced plans to delist its shares from the NYSE, said it had received a termination notice concerning the unconditional Equity Commitment Letter from Signa Holding GmbH, an affiliate of the company’s largest shareholder Signa International Sports Holding GmbH.
The company had entered into a binding equity commitment letter dated June 26, 2023, with unconditional commitments by Signa Holding to provide the company with additional liquidity of €150 million in the period from September 1, 2023 to September 30, 2025 (Equity Commitment Letter), supplemented by a side letter dated September 27, 2023, to cover the operational financing needs of SSU and to secure the going concern of SSU. Of the original €150 million commitment, €143 million remains undrawn to date. Signa Holding has terminated the Equity Commitment Letter today.
SSU said, “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. While the company regrets the termination of the Equity Commitment Letter, it will take the appropriate legal steps in the interests of all its shareholders, creditors and employees.”
SSU, based in Berlin, Germany, operates numerous sports-related websites, including Tennis-Point, WiggleCRC, Fahrrad.de, Bikester, Probikeshop, Campz, Addnature, and TennisPro.
