Canton Of Glarus: Waiver Of Repayment Of Loans From Sportbahnen Elm
The two largest mountain lift companies in Glarus Süd, those in Elm and Braunwald, have been in a very challenging financial situation for years. After the government council had regularly deferred due amortization rates for investment aid loans to both mountain railways since 2010, it decided in 2016 not to give them any further such funds and instead to encourage them to renovate. This renovation is based on the Financial Budget Act (Art. 10, Para. 2), regardless of the Elmer “Futuro” project.
Sportbahnen Elm AG now wants the financial restructuring to be resolved by the shareholders at a general meeting on September 25, 2021. As part of this redevelopment, the federal government and the canton are to forego reclaiming the outstanding investment aid loans.
Conditions for waiver
The government council is tying the waiver of the amortization of this outstanding, unsecured investment aid loan from Sportbahnen Elm AG in the amount of CHF 3.112 million to several conditions. The General Assembly of Sportbahnen Elm AG should decide:
- to reduce the nominal value of the 11,200 shares of CHF 500 each (CHF 5.6 million) to CHF 200, i.e. by CHF 3.36 million to CHF 2.24 million;
- then to increase the share capital by issuing 16,800 new shares at CHF 200 each (CHF 3.36 million) to the original value of CHF 5.6 million and converting a loan debt to a major shareholder in the amount of 3.36 Million francs in these new shares at this nominal value.
In addition, all participating banking institutions have to waive their half of their claims against Sportbahnen Elm AG secured by real estate, which results in a relief of the balance sheet by 3.475 million francs.
A similar approach is planned for the sports railways in Braunwald.
