Gherkin co-owner IVG plots new restructuring

 
Michael Bow
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CO-OWNER of the iconic Gherkin building 30 St Mary Axe yesterday said it was filing for a form of bankruptcy after failing to strike a deal with creditors over a debt for equity swap.

German firm IVG Immobilien, which bought the Gherkin for £600m five years ago, said it had filed for a so-called protective shield, a German form of Chapter 11 bankruptcy in the US.

IVG had proposed a complex restructuring of the company to slash its debt pile by £1.85bn. Yesterday it said creditors had rejected the deal after several rounds of “intense negotiations”.

The protection would allow executives to stay in charge for another three months, giving them more time to work out a second restructuring plan. “The road to agreement... will now take an alternative route,” chief executive Dr Wolfgang said.