Adler ‘Significantly Overstated’ Value of Old Debt, German Watchdog Finds
- Developer should have written down a receivable, watchdog says
- Indebted German company has been targeted by a short seller
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A subsidiary of troubled landlord Adler Group SA “significantly overstated” the value of stale debts in its 2021 accounts, according to German financial watchdog BaFin.
In its approved financial statements, Adler Real Estate AG should have cut the valuation of a receivable linked to the sale of shares in Accentro Real Estate AG in 2017, the regulator said Wednesday. Adler sold the shares in the company to a partnership advised by the firm of an Azeri businessman, but was still waiting to recover much of the money on the date the accounts were filed.