Hilco UK Buys Debt Of HMV To Gain Control

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Hilco UK, the retail restructuring group, has acquired the bank debt of HMV, effectively giving it control and paving the way for a rescue of the entertainment retailer that fell into administration last week, the Financial Times reported. People familiar with the situation said Hilco had acquired the debt from the group’s lenders, Lloyds and Royal Bank of Scotland for about £40m. HMV had underlying net debt of £176m as at the end of October, although people familiar with the matter said this had fallen to about £120m following the crucial Christmas and new year trading period. Although Hilco has not acquired HMV, it means Hilco can effectively take control of the retailer, and any rival bidder would need its agreement. Hilco declined to comment. People close to the situation said the move brought stability to HMV and meant that Hilco could work with administrator Deloitte on the best way to take the business forward. Read more. (Subscription required.)