We acted as administrator in the restructuring of Stockmann Oyj Abp, a major fashion and home goods retailer listed on the Helsinki Stock Exchange. Stockmann owns iconic department stores in Finland, Estonia and Latvia in addition to Lindex with approximately 460 fashion stores globally.
The restructuring programme drafted by Borenius covers the claims of approximately 2000 creditors. By implementing the restructuring programme, Stockmann intends to pay off more than EUR 400 million in first lien secured debt (bank loans and bonds) with a sale and lease back arrangement that will affect the Helsinki, Tallinn and Riga department store properties, convert 20% of unsecured debt (including commercial papers and suppliers) and 50% of hybrid loans into Stockmann shares, and combine its A and B share classes into one share series. The remaining 80% of the unsecured debt that is subject to the 8-year payment plan can be converted into a secured 5-year bullet bond at each creditor’s discretion.
The restructuring programme Borenius has drafted for Stockmann includes several innovative features. It will allow the company to access the market for refinancing and exit the restructuring plan prematurely if its business succeeds.