IVG has laid out an insolvency plan that will see the company restructure its €3.2bn (£2.6bn) of debt and go private. The German property investor, which co-owns the iconic Gherkin, EC3, (pictured), will reduce its capital to nil, then issue new shares to creditors in exchange for debt. This will see creditors of a syndicated loan totalling €1.3bn and a €100m loan originally extended by LBBW end up with 80% of IVG’s stock, and holders of a €400m convertible bond will have the remaining 20%. Following the debt-for-equity swap, IVG will be split into three separate businesses: real estate; retail and institutional fund management; and caverns.
IVG has laid out an insolvency plan that will see the company restructure its €3.2bn (£2.6bn) of debt and go private. The German property investor, which co-owns the iconic Gherkin, EC3, (pictured), will reduce its capital to nil, then issue new shares to creditors in exchange for debt. This will see creditors of a syndicated loan totalling €1.3bn and a €100m loan originally extended by LBBW end up with 80% of IVG’s stock, and holders of a €400m convertible bond will have the remaining 20%. Following the debt-for-equity swap, IVG will be split into three separate businesses: real estate; retail and institutional fund management; and caverns.
