Intrum files for “Chapter 11” in the US

The company has struggled as the pandemic, an energy crisis and two-decade-high interest rates failed to unleash a wave of loan defaults, with concerns mounting over Intrum’s net debt, which reached 49.4 billion Swedish crowns ($4.69 billion) at the end of June.

Intrum had won support for a debt restructuring from 73% of its noteholders, enough for a U.S. Chapter 11 procedure but short of the 75% needed to qualify, opens new tab for a simpler process under English law or a 90% threshold for an all-voluntary process.

The company expects to start the Chapter 11 proceedings by mid-November and get approval of the restructuring plan by year-end, it said, adding this would result in the recapitalisation taking effect during the first quarter of next year.