(Finance) – The Swedish group b, specialized in the NPL market and also operating in Italy, announced today that it has undertaken the preparatory phases for the operation of recapitalization announced last July, which aims to “significantly strengthen” Intrum’s capital structure
At the same time, Intrum has announced as of today, October 18, 2924, the start of a procedure of solicitation of creditors’ votesin favor of a pre-negotiated debt reorganization planas required by the procedure of Chapter 11. The procedure in question, provided for by US federal legislation for companies in liquidity crisis, can lead to bankruptcy or, as in the case of Intrum, to a restructuring and recovery of the company.
What does the company think it is doing? file for Chapter 11 in November in the United States, is also looking for i consents required by Swedish law for medium-term securitiesto facilitate the implementation of the two recapitalization and restructuring procedures.
Intrum has a total debt of around 50 billion of Swedish crowns, equal to approx 5 billion dollarsand its difficulties arose in the last two years, due to the unfavorable scenario linked to the high interest rate policy practiced by central banks, which made the group’s operations more expensive.
Creditors who have already joined the plan debt restructuring – about the 97% of holders of revolving instruments and about the 73% of bondholders – they have to reconfirm their support to the plan, which provides for the complete repayment of the bonds maturing in 2024 and the extension of the other bonds maturing in the following three years.
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