A bondholder of Adler Group SA has filed a lawsuit with the Frankfurt Regional Court to thwart the housing group's plan to restructure its debt in the UK. The lawsuit seeks to establish that the securities may not be rescheduled under English law, informed sources said. The procedure is at an early stage.

The identity of the plaintiff is not yet known. A spokeswoman for the district court said they can currently make no information. Adler did not respond to calls and emails requesting comment. The lawsuit could make the crisis-stricken landlord a thick line through the bill. Via London, Adler is trying to extend bond maturities, relax deadlines for audited closing and raise new liquidity by the end of April.

The group had negotiated with its creditors for months, but then failed with a German restructuring plan because not enough creditors agreed. Eventually, the Adler set up a vehicle based in the UK to restructure debt there.

English law allows restructurings to be made binding by a court under certain conditions even for creditors who do not agree. Foreign companies can also apply for this, provided they have a sufficient connection to the country.

The London trial began last month. A group of investors, including DWS, Attestor Capital, Strategic Value Partners and Carval Investors, are fighting the attempt. The group argues that the plan unduly disadvantages them. Bondholders are expected to vote on the restructuring later this month. The trial in London is expected to be completed by early April.