Paragon to Hold Second Bondholders' Meeting After Initial Vote Falls Short of Quorum

Paragon GmbH & Co. KGaA [ISIN DE0005558696] will hold a second bondholders' meeting in person on December 19, 2025, after a first attempt to vote on proposed adjustments to the terms of its EUR bond [ISIN: DE000A2GSB86 / WKN: A2GSB8] without a meeting failed to achieve the required participation quorum. The company presented the proposal to bondholders from November 27 to 29, 2025, but only 3.00% of the total outstanding bonds participated, clearly missing the necessary threshold.

The second meeting is scheduled for 10 a.m. at the company's headquarters in Delbrück, specifically at the Hotel Waldkrug, Graf-Sporck-Strasse 34, 33129 Delbruck. A participation fee will be provided. Prior to this meeting, Paragon, together with the SdK - the German Shareholders' Association - will host an informational event, for which a separate invitation will be sent.

Klaus Dieter Frers, founder and CEO of the personally liable partner of paragon GmbH & Co. KGaA, commented on the outcome of the first vote. "It was no surprise that the first bondholders' meeting did not reach the required participation quorum," Frers stated. "We expect that our efforts in discussions with the investors' protection associations and the major bondholders will ultimately lead to broad approval at the second creditors' meeting."

This development is significant for bondholders and the broader financial community as it highlights the challenges companies can face in achieving sufficient participation in remote voting processes for debt instrument adjustments. The low turnout of 3.00% underscores a common issue in corporate debt restructuring, where dispersed bondholders may not engage in electronic or written procedures, necessitating traditional in-person gatherings to reach decisive outcomes.

The implications extend to Paragon's capital structure and investor relations. Successful adjustment of bond terms could provide the company with greater financial flexibility, potentially impacting its ability to invest in core business areas. Paragon is a market-leading direct supplier to the automotive industry, developing, producing, and distributing solutions in automotive electronics, body kinematics, and electromobility. Its portfolio includes innovative air quality management, modern display systems, high-end acoustic systems, active mobile aerodynamic systems, and, through its Power division, power battery management systems and drive batteries.

For more information about paragon, please visit https://www.paragon.ag. The original release can be viewed on https://www.newmediawire.com.

The outcome of the December 19 meeting will be closely watched by investors, as it may influence Paragon's operational strategy and financial health. In-person meetings often foster more direct dialogue and can lead to higher participation rates, which is crucial for legitimizing major financial decisions. This process also reflects broader trends in corporate governance, where balancing efficiency with inclusivity in stakeholder engagement remains a key consideration for publicly traded companies like Paragon, listed on the Regulated Market (Prime Standard) of Deutsche Borse AG in Frankfurt am Main.