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Rekapitaliseringstransaktion/Recapitalisation transaction 

För information om Intrums pågående rekapitaliseringstransaktion och tillgång till den svenska rekonstruktionsplanen, klicka här

For information on Intrum’s ongoing recapitalisation transaction and access to the Swedish reorganisation plan, click here

 

An overview of the recapitalisation process
‹ Intrum’s recapitalisation process

An overview of the recapitalisation process

Intrum is implementing a financial and operational reorganisation to strengthen its position as Europe’s market-leading credit management company.

With a clear strategy in place, Intrum is taking decisive steps to ensure a more resilient future and support long term growth.  

The restructuring plan focuses on reducing debt and extending maturities to significantly improve and strengthen Intrum’s capital structure. In addition to the recapitalisation process, Intrum has a decisive plan underway to reduce its leverage, including streamlining operations, extracting value from its investment portfolio, and focusing on growing its highly cash generative servicing business, as part of a capital-light business model. 

This page provides an overview of the recapitalisation process, which is taking place in the US and Sweden, and all the press releases related to the restructuring process. It includes details on key announcements, strategic decisions, and Intrum’s path forward. Check back regularly for the latest news and announcements.

Intrum's President & CEO Andrés Rubio:

"Our restructuring is about building a stronger, more resilient Intrum—one that is well-equipped to navigate challenges and seize future opportunities. By taking decisive action now, we are creating a solid foundation for long-term success. I’m confident that these changes will enable us to continue delivering value to our clients, consumers, and stakeholders for years to come."

Chapter 11 process in the US

  • On 18 October 2024, Intrum took preparatory steps to implement its Recapitalisation Transaction by launching its prepackaged Chapter 11 Solicitation. The Chapter 11 process is a well-established legal framework in the United States that businesses with operations in multiple jurisdictions can use to implement recapitalisation transactions.
  • On 15 November 2024, Intrum took an important step and filed a voluntary petition for reorganisation pursuant to Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. Intrum received overwhelming support from creditors for its pre-packaged Chapter 11 Reorganisation Plan, which was intended to significantly improve and strengthen the company’s capital structure and position it for long-term growth and success.
  • On 31 December 2024, the U.S. Bankruptcy Court confirmed Intrum’s Chapter 11 plan, marking a critical step towards the implementation of its Recapitalisation Transaction. The effectiveness of the Chapter 11 Plan is subject to various conditions precedent, including the completion of a Swedish company reorganisation.  

 

Swedish reorganisation process in Sweden

  • As noted above, the Swedish company reorganisation forms an important next step in the implementation of Intrum’s Recapitalisation Transaction. Please find an overview of the key announcements as follows:
  • On 8 January 2025, Intrum filed a petition to initiate a Swedish Company Reorganisation and its application was approved by the Stockholm District Court. The order relates only to the listed parent company of the Intrum group, Intrum AB, and not any of its subsidiaries. During the Swedish company reorganisation, the Chapter 11 proceedings remain ongoing, and the automatic stay and the relief granted in the Chapter 11 proceedings remains effective.
  • On 31 January 2025, Intrum announced that, following the creditors’ meeting on January 24 2025, the Stockholm District Court ruled to allow Intrum’s Swedish reorganisation process to continue.
  • On 27 February 2025, Intrum announced that it will instruct Euroclear Sweden and Nasdaq Stockholm to block trading of its medium term notes maturing on (a) 3 July 2025 with loan number 114 (ISIN: SE0013105525), (b) 3 July 2025 with loan number 115 (ISIN: SE0013105533), (c) 12 September 2025 with loan number 111 (ISIN: SE0013104080) and (d) 9 September 2026 with loan number 113 (ISIN: SE0013360435) (jointly referred to as the “MTNs”) with effect from 10 March 2025. The blocking of trading is a procedural action and one of the administrative steps Intrum will take as part of the recapitalisation process. It is being implemented to ensure an orderly process for MTN-holders to participate in the upcoming vote on the reorganisation plan as part of the Swedish reorganisation process and is intended to help verify that those voting at the plan meeting are the beneficial owners and/or holders of the ultimate economic interest of the MTNs.

 

Minimal impact on employees and clients

As has been the case throughout the recapitalisation process, Intrum continues to operate with minimal impact on employees and clients. During the Swedish reorganisation process, as was the case during Chapter 11, Intrum will remain in possession and control of its assets and will retain its existing management team and board of directors.

For employees:

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

For clients:

  • Intrum continues to operate as normal with no disruption of service for clients and customers.
  • Intrum will continue to provide exceptional service to clients and stakeholders across all markets throughout implementation and after.

 

Access Intrum's Reorganisation Plan

 

 

Press releases and updates relevant for restructuring process

Intrum’s restructuring is in its final phase, independent of Chapter 11, with the Stockholm court accepting the application. The process expected to conclude in the first half of 2025.

  • 27.02.2025: Intrum updates on trading of its medium term notes in advance of upcoming plan meeting in Swedish Company Reorganisation - link to press release

  • 31.01.2025: Following creditors’ meeting, Stockholm District Court permits Intrum’s reorganisation to continue - link to press release

  • 20.01.2025: Intrum/Nordea webinar – update on recapitalisation process - link to press release

  • 08.01.2025: Intrum has entered into a Swedish company reorganisation – Operations continue as normal - link to press release

In December, the motion to dismiss was denied and the plan was confirmed.

  • 31.12.2024: U.S. Bankruptcy Court has confirmed Intrum’s Chapter 11 plan, marking a critical step towards the implementation of its Recapitalisation Transaction - link to press release

  • 17.12.2024: Intrum will proceed with seeking confirmation of its pre-packaged Chapter 11 Plan and has not reached settlement with the 2025 Ad Hoc Group - link to press release

  • 17.12.2024: Intrum announces that it is engaged in settlement discussions with the 2025 Ad Hoc Group to facilitate a fully consensual Chapter 11 - link to press release

Intrum filed a prepackaged Chapter 11 in the U.S., with 100% of RCF banks and 82% of bondholders in favour. The “Short-end” group opposed the restructuring, with a subset initiating legal opposition.

  • 15.11.2024: Intrum AB obtains approval from noteholders to amend the terms and conditions of the notes for certain MTN-series issued under its MTN-programme in accordance with Proposal 1 - link to press release

  • 12.11.2024: Clarification to the proposal set out in the published notices of noteholders’ meetings under Intrum AB’s (the “Company” or “Intrum”) outstanding notes issued within its MTN programme - link to press release

  • 01.11.2024: Notice of Extraordinary General Meeting of the shareholders in Intrum AB (publ) - link to press release

Intrum evaluated various implementation alternatives to determine the most effective legal, financial, and operational approach for executing its restructuring plan. This assessment ensured a smooth transition, supporting the company’s long-term stability and strategic objectives.

  • 18.10.2024: Correction: Intrum launches prepackaged Chapter 11 Solicitation, continuing significant progress towards implementation of its Recapitalisation Transaction - link to press release

  • 18.10.2024: Intrum launches prepackaged Chapter 11 Solicitation, continuing significant progress towards implementation of its Recapitalisation Transaction - link to press release

  • 18.10.2024: Intrum AB publishes notices of noteholders’ meetings under its outstanding medium term notes issued within its MTN programme - link to press release

 

  • 18.09.2024: Intrum provides update on level of noteholder support for recapitalisation transaction and consent fees - link to press release

In August, Intrum reached an agreement with RCF banks, with 97% of all banks signing the Lock-Up Agreement, marking a significant milestone in the restructuring process.

  • 30.08.2024: Intrum achieves the required level of noteholder support to implement recapitalisation transaction - link to press release

  • 16.08.2024: Intrum enters into lock-up agreement with majority of its RCF lenders continuing significant progress towards recapitalisation - link to press release

  • 15.08.2024: Intrum reaches agreement in principle with the majority of its RCF lenders continuing significant progress towards recapitalisation - link to press release

In July 2024, Intrum secured a Lock-Up Agreement with the “Long-end” group, with 73% of bondholders signing the agreement, demonstrating strong support for the restructuring process.

  • 30.07.2024: Notice to holders of senior unsecured notes - link to press release

  • 11.07.2024: Correction: Intrum announces significant milestone as it enters into binding lock-up agreement with majority of noteholders - link to press release

  • 11.07.2024: Intrum announces significant milestone as it enters into binding lock-up agreement with majority of noteholders - link to press release

Intrum engaged proactively with its creditors, working with two principal bondholder groups: the “Short-end” group, primarily holding 2024 and 2025 bonds, and the “Long-end” group, holding 2025 to 2028 bonds. At the same time, Intrum conducted parallel discussions with RCF banks to advance the restructuring process.

Facing deteriorating market conditions, Intrum experienced a severe market downturn, with stock prices declining from SEK 73 to SEK 15 (down ~80%) and bonds trading at significant discounts, some at 50% of par. Rating agencies, including S&P, Moody’s, and Fitch, downgraded Intrum’s credit rating to as low as “C” or equivalent. With over SEK 30 billion in debt maturities looming through January 2026 and no market access, Intrum engaged Houlihan Lokey and Milbank as advisors to evaluate restructuring options and secure long-term financial stability.

  • 21.03.2024: Intrum invites investors and analysts to an update call Monday 25 March at 15:00 - link to press release

  • 14.03.2024: Intrum appoints advisors to evaluate improvements of its debt capital structure - link to press release

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