Deal announcement: PwC Finland acted as the lead financial advisor to the Stockmann's administrator
PwC acted as the lead financial advisor to the Administrator of the corporate restructuring proceedings of Stockmann plc in the process of submitting a well-balanced restructuring programme.
PwC Finland provided financial and capital structure advice to Administrator Jyrki Tähtinen and his team at Borenius in relation to Stockmann Plc statutory reorganization process to revitalize the business and restructure EUR 736.9 million worth of various debt instruments.
The Coronavirus outbreak impacted severely on Stockmann, and the company was forced to file for corporate restructuring on 6th April 2020. As a result of productive cooperation between main stakeholders, the restructuring programme proposal was submitted to the Helsinki District Court on 14th December 2020. The eight year programme is based on the continuation of Stockmann’s department store operations, the sale and lease-back of the department store properties and the continuation of Lindex’s business operations under the ownership of the Stockmann Group.
The restructuring programme proposal sets out the terms on how different debt classes will be treated consisting of EUR 433.5 million in secured restructuring debt, EUR 195.7 million in unsecured restructuring debt and EUR 108.1 million in hybrid bond debt. Along with new, sharpened business strategy, the main terms include realisation of the company’s real estate assets, debt-to-equity conversion for 20% of unsecured debt, repayment schedule for 80% of unsecured debt with an option to convert receivables into secured bond, and 50% equity conversion for hybrid bond. Additionally, the A and B shares will be combined as part of the proposed programme.
"I am very pleased with the outcome, advise and constructive cooperation between all stakeholders during the program preparation. Developing a restructuring program that treats all stakeholders fairly and enables the business to recover, requires a combination of legal, financial and capital market expertise along with negotiation strategies for stakeholder discussions.", says the administrator of the corporate restructuring proceedings of Stockmann plc, Attorney Jyrki Tähtinen.
We want to thank Jyrki Tähtinen and his team at Borenius for great cooperation and congratulate all stakeholders in the process of navigating the Finnish statutory recovery process in an innovative way.
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Marko Koski
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