Waiting can be nerve-wracking. Many asset managers who have a bad position in their portfolio therefore opt for a quick fix, dumping their securities on the market and thus realising a loss.

This behaviour can also be seen among bondholders of GZO Spital Wetzikon, which is currently in debt restructuring. The trading volumes reported on the SIX for the distressed bond worth CHF 170 million are manageable, but not insignificant over time.

«Experienced Restructuring Fund from Abroad»

Apparently, a number of pension fund managers and other asset managers prefer to make a clean break and exit rather than wait until the vote on the debt restructuring agreement takes place in the spring – and if the proposed 65 to 70 per cent debt waiver is rejected, the nail-biting would continue. Or, as activist investor Gregor Greber put it in an interview with finews.com at the beginning of the week: they are voting with their feet.

This naturally raises the question of who on the other side is willing to buy GZO bonds at a price that has fluctuated between 31 and 35 per cent in recent weeks. Are they the notorious vulture funds? Greber, who himself has invested in GZO, saw signs ‘that a restructuring fund from abroad with deep pockets and expertise in special situations is in the process of building up a stake’.

Specialised Investment Manager from Florida

It has been known for some time that the investment company Clearway Capital, headed by Gianluca Ferrari, holds GZO bonds. However, research by finews.com has now revealed that another investment vehicle focused on special situations has purchased GZO bonds – and is also attempting to exert pressure for a different solution that is more favourable to creditors.

This is Kawa, an alternative investment manager from Florida that has been active since 2007. It manages assets of around $3 billion and specialises in specific strategies involving corporate bonds.

«We Want to Contribute Constructively to a Better Solution With our Proposals.»

Zachary Goldberg, investment analyst at Kawa, commented on the GZO case at the request of finews.com. Goldberg completed part of his education in Zug and Martigny and is therefore familiar with the situation in Switzerland. He emphasises that Kawa is not a classic vulture fund. «We see ourselves as an investment company that wants to contribute constructively to better solutions in the interests of creditors, but also other stakeholders, with our own proposals.»

According to Goldberg, Kawa became aware of GZO at an early stage. «We have had the case on our radar since 2024 and have been invested since the beginning of 2025. The operational business is actually functioning well, but the bonds are trading at a distressed level­» (i.e. at a level that signals payment problems).

Extensive Experience in the Property Business

Goldberg also emphasises that Kawa has extensive experience in the real estate business as a lender. The GZO owns a large property, with buildings used for operations or unused in the form of «hospital wasteland». Their valuation is a major point of contention between the GZO Board of Directors and the creditors.

It is very extreme to value the construction projects that have already begun at zero. Of course, zoning regulations mean the properties must remain to serve the public good. However, Goldberg believes that alternative use for the unfinished construction is possible in principle. The canton also has an interest in this, especially since it refused to help the GZO in 2024. The properties could also be used for other public purposes or for hospital-related purposes, e.g. as a specialized care facility.

Held Discussions, Met With Deaf Ears

Kawa also sought talks with the board of directors and hospital management. «We had a series of meetings with them. We presented ideas for a fair solution for the creditors, e.g. how to utilize the properties. Unfortunately, management has not yet been receptive to our continued efforts to engage in a constructive solution, but we remain hopeful that they will eventually come to the table», Goldberg notes.

A potential equitable proposal could involve a combination between cash payment, ownership and participation in the future success of the hospital. «We remain solution oriented and have repeatedly tried to emphasize to management that we are not a hostile party».

Contingency Planning with a Rescue Company

Goldberg believes it is a real risk that creditors will not approve the composition agreement in its current form in spring 2026 – and if that happens, the company will go bankrupt. He also feels that contingency planning is lacking in this case. «We have asked GZO to set up a rescue company so that hospital operations can continue without interruption even in the event of bankruptcy. Keeping the hospital operational remains our highest priority.»

Would Kawa also be prepared to inject fresh money if necessary to finance a viable solution? Goldberg: «As things stand today, the answer is no. But if there were new approaches and a new way of thinking, especially with regard to the real estate component, that would certainly be a possibility.»

Is Kawa currently continuing to buy GZO bonds from nervous sellers? Goldberg does not wish to comment on this.