Completes Financial Reorganization Which Significantly Improves Capital Structure and Liquidity
Receives Munich Commercial Court Approval for MGG to Become Company's Sole Shareholder
Spark Networks SE ("Spark" or "the Company"), a leading social dating platform for meaningful relationships, today announced that it has successfully completed its financial reorganization process, which significantly improves its capital structure and liquidity.
On January 12, 2024, the Company received approval from the Munich Commercial Court (the "German Court") on its share capital reduction and share capital increase (together, the "Share Capital Registration"). As a result of the Share Capital Registration, MGG Investment Group LP ("MGG") is now Spark's sole equity owner.
"Today's approval completes Spark's financial restructuring process as we move into our next chapter with momentum on a stronger financial foundation," said Colleen Brown, Chair of Spark's Board of Directors and Interim Chief Executive Officer. "With MGG's support, we are well positioned to drive forward in our transformation plan and continue igniting meaningful relationships across our portfolio of brands. We look forward to building on our partnership with MGG as we reimagine how people can safely and creatively meet their match." Kristie Goodgion, Spark's Chief Financial Officer added, "Through our financial reorganization, we have significantly improved our capital structure and are moving into the future with the resources and financial support to continue implementing our transformation efforts."
Kevin Griffin, Chief Executive Officer and Chief Investment Officer of MGG, said, "MGG is excited to continue our partnership with Spark, which is poised for growth and expansion across its market leading portfolio. With a strengthened balance sheet in place, we look forward to working with Spark's leadership team to support the business and the execution of its ongoing transformation."
The German Court's approval of the Share Capital Registration follows the January 4, 2024, approval of Spark's Restructuring Plan by the Local Court Charlottenburg, Berlin, Germany pursuant to the Act on the Stabilization and Restructuring Framework for Companies (Gesetz über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen, StaRUG) ("StaRUG"). The Company intends to seek recognition of the German Court's approval of the Restructuring Plan in the Company's Chapter 15 Proceedings.
Advisors
Jones Day and Brinkmann Partner Rechtsanwälte are serving as legal counsel, Ankura Consulting serving as Turnaround Advisor, Mr. Adrian Frankum serving as Sparks Foreign Representative in the Chapter 15 Proceedings, Ernst Young GmbH serving as Financial Advisor, and C Street Advisory Group and Corecoms Consulting GmbH Co. KG are serving as communications advisors.
About Spark Networks SE
Spark Networks SE is a leading social dating platform for meaningful relationships focusing on the 40+ demographic and faith-based affiliations. Spark's portfolio of premium and freemium dating apps include Zoosk, EliteSingles, SilverSingles, Christian Mingle, Jdate, and JSwipe, among others. Spark is headquartered in Berlin, Germany, with offices in New York and Utah.
About MGG Investment Group LP
Founded in 2014, MGG is a private investment firm that provides bespoke investment solutions to mid-size and growing middle market companies. MGG works with owners and management teams to help build lasting value, address immediate needs, and solve complex situations while seeking to generate attractive risk-adjusted returns for investors irrespective of and through market cycles. For more information, visit www.mgginv.com.
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Contacts:
Media
C Street Advisory Group
spark@thecstreet.com
For MGG
Nathaniel Garnick/Sam Fisher
Gasthalter Co.
+1 (212) 257-4170
