Dutch Retailer Hema to Be Taken Over By Bondholders

Dutch retailer Hema’s senior secured noteholders (SSNs) are set to take over the business through a debt-for-equity swap, as more than 80% of noteholders agreed to a debt restructuring, banking sources said, Reuters reported. On June 15 the company entered lock-up, as 100% of its RCF lenders and 62% of its €600m, 2022 SSNs agreed to the restructuring. However, a threshold of 75% of SSN support was needed before the deal could be implemented. Around 80% of SSNs now support the deal, meaning it can go ahead, one of the sources said. Under the terms of the debt restructuring, €300m of the SSNs will be written off in return for almost 100% of the business. The existing management may retain a small percentage of the business, one of the source said. The SSNs will also provide a €42m liquidity injection, through private placement notes. Read more

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