U.S. Bankruptcy Court has confirmed Intrum’s Chapter 11 plan, marking a critical step towards the implementation of its Recapitalisation Transaction
- The United States Bankruptcy Court for the Southern District of Texas (the “Court”) has confirmed Intrum’s prepackaged Chapter 11 plan of reorganisation (the “Chapter 11 Plan”) and denied a motion to dismiss that was supported by certain minority noteholders
- Once the Court’s order is entered, Intrum will apply for Swedish company reorganisation (the “Swedish RP”) as soon as practicable, which is expected to complete in H1 2025, subject to achieving required voting thresholds and approval by the Swedish court
- Intrum expects to emerge from the Recapitalisation Transaction with ample runway to execute its business plan, positioning the business for long term success
- Intrum continues to operate as normal with no disruptions as its employees continue to provide critical services for clients and customers
Intrum AB (“Intrum” and together with its subsidiaries, the “Group”) is pleased to announce the completion of an important step in implementing its Recapitalisation Transaction, as previously described in the press releases from July to November 2024 (the “Announcements”). Unless given a different meaning in this release, terms defined in the Announcements have the same meaning when used here.
The Court has confirmed Intrum’s Chapter 11 Plan, subject to entry of the Court’s order. In addition, the Court has denied the motion to dismiss Intrum’s Chapter 11 cases, which had been presented by certain minority noteholders. The effectiveness of the Chapter 11 Plan is subject to various conditions precedent, including the completion of a Swedish RP, to ensure the results of the Chapter 11 process are given equal effect in Sweden.
Intrum expects to apply for the Swedish RP in accordance with the Swedish Reorganization Act (Sw. lagen (2022:964) om företagsrekonstruktion) as soon as practicable in the Stockholm District Court.
The c. 97% of RCF Lenders and c. 73% of Noteholders, each by value, who have acceded to Intrum’s Lock-Up Agreement remain legally bound (on and subject to the terms of the Lock Up Agreement) to reconfirm their support by voting in favour of the Swedish RP. The Lock-up Agreement sets out the key agreed terms of the Recapitalisation Transaction and further details on the timeline and necessary steps for the Swedish RP will be provided at a later stage.
Intrum continues to firmly believe the Recapitalisation Transaction offers the best possible outcome for all stakeholders, because it will provide Intrum with a robust capital structure that will support long-term, sustainable growth.
Further information
Further details of the Chapter 11 cases can be found at the following website:
https://cases.ra.kroll.com/IntrumAB
The Chapter 11 cases relate to, amongst other debt instruments, the senior unsecured notes and MTNs due from 2025–2028 with the following identifiers: XS2211136168 / XS2211137059; XS2034925375 / XS2034928122; XS2052216111 / XS2052216202; XS2566292160 / XS2566291865; SE0013105533; SE0013105525; SE0013104080; SE0013360435; XS2093168115.
For further information on the Chapter 11 cases and/or the Recapitalisation Transaction, please contact Houlihan Lokey, who act as financial advisers to Intrum at the email addresses below.
If you experience any issues in accessing the website, please contact the Information Agent at the email address below.
Contact Details:
Kroll Issuer Services (as Information Agent): intrum@is.kroll.com
Houlihan Lokey (as advisers to Intrum): intrum@hl.com
Media Inquiries:
Brunswick Group (as advisers to Intrum)
Azadeh Varzi, Partner
Freya Semken, Director
+44 (0) 20 7404 5959
Oscar Karlsson, Partner
Hedda Söderström, Associate
+46 (8) 410 32 180
DISCLAIMERS
This press release was prepared solely for information purposes and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Likewise, it does not provide and should not be treated as providing investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Recipients should not consider it as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.
No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained in this press release. Neither the Group nor any of its advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this press release or its contents.
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