Hema to be taken over by noteholders

Hema to be taken over by noteholders

THE WHAT? Netherlands-based high street chain Hema is set to be taken over by its senior secured noteholders, according to a report published by Reuters.

THE DETAILS The debt-for-equity swap has been agreed by more than 80 percent of bond holders, Reuters reports, quoting banking sources, well above the 75 percent of senior secured noteholder support required to carry out the transaction.

THE WHY? The deal will see some €300 million of debt wiped out in return for an almost 100 percent stake in the business and a €42 million liquidity injection via private placement notes, helping the business to maintain cash flow.

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