FRANKFURT, June 1 (Reuters) - German property company IVG Immobilien said it needs to cut its liabilities by up to 1.75 billion euros ($2.27 billion) as it struggles to refinance debts built up during an expansion spree.
The company said late on Friday that the reduction was needed to bring "its loan-to-value ratio and its interest coverage ratio to a normal market level, thereby making it fit for the capital markets once again in the longer term".
IVG, based in Bonn in western Germany, said in March it needed to completely restructure its almost 4 billion euros in debt to make sure it has enough capital to refinance loans maturing this year and in 2014.
It warned that it had come close to breaching covenants on its syndicated loans, which would mean banks could demand early repayment.
Last month, the company was reported to be considering a debt-for-equity swap that would be costly for shareholders and junior debt holders.
IVG, which manages assets worth 21 billion euros including a stake in London's landmark Gherkin office building, reported a 100 million euro net loss last year and skipped paying a dividend. It also deferred coupon payments on a hybrid bond.
On Friday, the group said that as part of the strategic review, further adjustments to certain balance sheet items would be made, not specifying the amount.
It said it had decided not to hold its annual general meeting until Aug. 30, 2013. ($1 = 0.7716 euros) (Reporting by Christoph Steitz; Editing by Catherine Evans)