Gherkin co-owner IVG reveals a £1.85bn debt for equity scheme

 
Michael Bow
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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.