THE GERMAN co-owner of London’s iconic 30 St Mary Axe, otherwise known as the Gherkin, has outlined a debt for equity swap to slash its debt pile by £1.85bn.
IVG Immobilien, which bought the Gherkin with Evans Randall from insurer Swiss Re for £600m in 2007, has agreed to give its creditors 77 per cent of the company’s stock in return for writing off a £1.16bn syndicated loan approaching maturity.
IVG will also receive €140m (£120m) bridge financing from the creditors to cover the company’s liquidity needs. It will also raise cash via a new share placing.
Two creditors of separate £344m bonds will also write off the loans, in return for a mixture of equity and a future share issue.
Creditors and shareholders must now approve the proposals.