Sweden’s Intrum Secures Chapter 11 Plan Approval from US Judge
Intrum AB’s debt restructuring plan has been confirmed by a US judge, overcoming creditor opposition and ensuring the company’s future operations.
Intrum AB, Texas, Bankruptcy, Debt Restructuring, Creditors, Sweden
Texas: A US bankruptcy judge has given the green light to Intrum AB’s debt restructuring plan. This decision comes despite some creditors pushing back against it. So, it’s a big win for the debt collector.
Judge Christopher Lopez made his ruling after a lengthy hearing. Intrum’s lawyers and the opposing creditors went back and forth about whether the company’s bankruptcy filing was valid.
One of Intrum’s attorneys, Andrew M. Leblanc, mentioned that this restructuring is crucial for the company to keep running smoothly. Interestingly, only a small fraction—just 6%—of creditors showed up to object.
On the flip side, Benjamin Finestone, representing some bondholders, argued that Intrum didn’t really need to reorganize. He pointed out that the company had no liquidity issues and wasn’t in financial trouble.
There was a last-minute deal that almost worked out but fell apart quickly, leading to some heated discussions in court. The opposing group, including Diameter Capital Partners, felt the plan didn’t prioritize their bonds properly.
Intrum had sought court protection in Texas last November due to a hefty debt load that became tough to manage with rising interest rates. Earlier this year, they managed to strike a deal to restructure their massive 58.4 billion krona debt with the backing of 82% of their creditors.