Intrum’s recapitalisation process

Intrum is implementing a financial restructuring to avoid insolvency due to substantial upcoming debt maturities in 2025 and 2026 and beyond. The financial restructuring will allow Intrum to strengthen its capital structure, reduce debt, and enhance long-term financial stability. This decision follows challenging market conditions, including a severe market downturn, credit rating downgrades, and limited access to capital markets.

By taking proactive measures now, we are ensuring a more resilient and sustainable foundation for the future, enabling us to continue delivering high-quality services to our clients and stakeholders.

In Intrum’s case, the pre-packaged American Chapter 11 process is the best first step to implement the recapitalisation transaction as quickly as possible with certainty and with minimum disruption. 

The pre-packaged Chapter 11 presents the best outcome for all stakeholders because it allows the Company to restructure its debt without disruption to ongoing business. It provides high confidence of outcome because Intrum has secured the required consents from its creditors to pursue a Chapter 11 plan prior to filing, giving it greater certainty of outcome. 

In December 2024, the U.S. Bankruptcy Court confirmed Intrum’s Chapter 11 plan.

Like the American Chapter 11 process, approved on 31st of December 2024, the Swedish reconstruction process is an implementation tool. It is a court-supervised process in Sweden that will allow Intrum to remain in possession and control of its assets, and existing management and the board of directors will stay in control of the business during this process.

The purpose of the Swedish company reorganisation is to give effect to the Group's recapitalisation transaction in Sweden, and hence forms an important next step to implement the recapitalisation transaction. 

No, Intrum is not going out of business. While we filed for Chapter 11 bankruptcy protection to facilitate the restructuring, this does not mean we are going out of business or running out of cash in the ordinary course of business.

• Intrum remains in compliance with all financial covenants under its current debt obligations.
• Our operations will continue as usual throughout the pre-packaged Chapter 11 and Swedish reconstruction processes, with minimal disruption to clients and customers.
• This approach ensures the recapitalisation transaction can be implemented quickly, efficiently, and with certainty.
• Clients and stakeholders can expect uninterrupted service across all markets—business continues as usual.

No, Intrum is not going out of business. Intrum will continue to provide exceptional service to clients and stakeholders across all markets throughout implementation and after. For clients and customers, it is business as usual. 

Intrum aims to complete the recapitalisation transaction in H1 2025.  Intrum has also agreed to certain amendments to its Lock-Up Agreement, Backstop Letter, and the Plan, which facilitate implementation of the Recapitalisation Transaction after 31 May 2025 if there are delays to the implementation process caused by the Swedish company reorganisation process.

No, Intrum remains a public company with a broad shareholder base.

• The restructuring limits shareholder dilution to 10% (on a fully diluted basis), alongside a 10% reduction in notes.
• Current shareholders will not be significantly diluted or lose their shares.
• Intrum continues to operate as a publicly traded company with a strong investor base.

Our employees shouldn’t experience any change in their day-to-day roles as part of this reconstruction process. The restructuring process in Sweden only concerns Intrum AB and its balance sheet, not its day-to-day operations.

Intrum continues to operate as normal with no disruption of service for clients, customers and employees. Intrum will continue to provide exceptional service to clients and stakeholders across all markets throughout implementation and after. For clients and customers, it is business as usual.