BERLIN (Reuters) - German automotive interiors maker Grammer (GMMG.DE) said a regional court had lifted the enforcement of a temporary injunction on the exercise of a convertible bond, allowing it to issue shares to a strategic partner.
Grammer management planned to bring China’s Ningbo Jifeng (603997.SS) on board as a “white knight” against Bosnia’s Hastor, which owns a stake of at least 20 percent in Grammer and has criticised Grammer’s management.
In February Ningbo subscribed to a 60 million euro (£51 million) mandatory convertible bond representing approximately 9.2 percent of Grammer’s share capital, but the Hastor Group was granted an injunction to block Ningbo Jifeng from exercising the convertible bond.
A regional court in Nuremberg lifted the enforcement of that injunction on Tuesday, Grammer said.
“This means that there are now no longer any obstacles to the issue of new shares to the strategic partner upon the conversion rights being exercised,” Grammer said in a statement.
A spokesman for the Hastor family’s investment vehicle Cascade said only the enforcement of the interim injunction had been lifted and that the court would make a final decision on May 16.
Reporting by Victoria Bryan and Irene Preisinger; editing by Susan Thomas