On Monday, a vote of confidence was not only held in Paris, where the parliament of Prime Minister François Bayrou's government predictably withdrew its support, but also in Uster. The outlook was less clear for the creditor's meeting of GZO Spital Wetzikon, which is undergoing restructuring proceedings after defaulting on a 170 million Swiss franc bond.

Last week, a group of opposing bondholders led by Clearway Capital and Gregor Greber - who reject the proposed debt haircut of 65-70 percent - reaffirmed their plan to oust administrators Brigitte Umbach-Spahn and Stephan Kesselbach in favor of Michael Endres. They also put forward a new slate of four candidates for the creditors' committee.

Long Meeting with High Turnout

The creditors' meeting in Uster lasted more than five hours into the evening. As expected, it became a platform for passionate speeches and debates, serving as an outlet for frustration Unlike last October's bondholders' meeting, this time the media were allowed, a welcome step for transparency (though finews.ch was not present).

More than 500 creditors attended or were represented at the meeting, reportedly including many GZO employees. Voting was conducted on a per-head basis rather than according to capital holdings.

The main purpose of the meeting was for the administrators to update creditors on the status of the proceedings. There were no surprises: the key points were already known and later confirmed in a press release that evening.

• For the restructuring, ensuring the continued operation of the hospital remains crucial. Operations are currently running well and are self-sustaining. Their continuation during the debt moratorium does not jeopardize creditors' interests.
• For the further course of the restructuring process, the planned capital increase of 50 million francs by the twelve shareholder municipalities will be decisive. In November 2025, referendums will be held in the nine municipalities of Bäretswil, Bauma, Bubikon, Dürnten, Gossau, Hinwil, Rüti, Wald and Wetzikon.
• With the support of the administrators, GZO is in direct dialogue with creditors to further develop the preliminary restructuring plan.

The two incumbent administrators stood for re-election and were confirmed with 319 votes to 164 (with 20 abstentions).

The outlook is less clear when it comes to the composition of the creditors' committee. Of the five elected members, two (credit analyst Marc Meili of Independent Credit View and Markus Eberle of Nebag) were nominated by Clearway Capital.

Postfinance Joins the Creditors' Committee

Maurice Faesch, Legal Counsel at Postfinance, was also elected to the committee. PostFinance had granted GZO a promissory note loan and was forced to write off 25 million francs in 2024. The bank had never officially acknowledged the exposure but now appears determined to take an active role. With Faesch's election, financial investors dominate the committee.

The committee also gained industry expertise with the election of Markus Karzig, a physician in Bauma, and Alexandra Kochanowski, Chief physician at GZO Spital. Supplier creditors, however, remain unrepresented.

The creditors' committee's role is to oversee the administrators. It can issue recommendations and is regularly briefed by them on the status of the proceedings. In addition, it takes on certain responsibilities previously handled by the bankruptcy court. However, the committee has neither instruction nor veto rights over the administrators or the debtor.

Refinements Underway

GZO itself (which has communicated much more effectively since the full renewal of its board of directors) also commented on the outcome of the creditors' meeting. Chariman of the Board Andreas Mika welcomed the strong interest of the creditors and expressed relief that the administrators were not voted out.

He also indicated that the adjustment elements to the restructuring plan, outlined in broad terms at the meeting, would now be «further developed, calculated, and reviewed under high pressure». He assured that the results of various creditor discussions and input from the creditor base would be incorporated into the work. Adjustments under discussion reportedly include replacing part of the debt waiver with an earn-out or deferral component, along with a new loan to finish the hospital's new building, which still stands as an unfinished shell.

Other Options Considered but Rejected

GZO representatives - including Mika, hospital director Hansjörg Herren and CFO Daniel Müller – also delivered updates at the meeting. Their presentation has since been published on the GZO website. Müller addressed, among other things, the «examined and rejected restructuring options,» which included extending the bond's maturity, securing an even larger equity contribution from the municipalities, adjusting the business model, and converting debt into equity.

Mika also welcomed the establishment of the creditors’ committee: «This enables us to work together on finalizing a viable restructuring agreement.» The decisive vote on the restructuring plan will take place in spring 2026, at which point voting will be based on capital, not headcount.

For now, the administrators and hospital management have achieved an important interim victory. The real litmus test, however, is still to come.