Intrum Light-Touch Workout Plan Still Implies High LTV; New Money Uptier Is Appealing Amid Uncertainty Over Bold Business Plan Success; Chapter 11, English Process Most Likely If 90% Consent Unattained

Reporting: Chiara Elisei, Luca Rossi Credit Research: Wayne Jambawo Legal Research: Chetna Mistry Relevant Documents: Update on Refinancing Business Plan Sweden-headquartered European credit manager Intrum put forward on June 20, an ambitious business plan and a debt workout proposal agreed in principle with a group of long-dated bondholders. The proposal, which is expected to be launched by the end of this week, allows the group to address its bond maturities, with a 10% impairment to investors, in return for 10% of the group’s equity. The business plan is predicated on the group’s successful pivot to an asset-light model, namely through the use of capital partnerships and growth of the servicing business. The proposal affords the group some runway to focus on executing its strategy before dealing with its next largest maturity, which will be 2027 if it goes ahead. Under the business plan, the group said it expects cash flow available for debt service, or CFADS, to grow at a CAGR of 13.4% over the 2024- 2028 period, which should aid in deleveraging, if the company can hit these targets. The level of support for the proposal was in the mid-30% level at the time of the announcement but has[...]