Aventum advised Stockmann in submitting a restructuring programme supporting restoration of Stockmann’s business operations and reorganisation of 736.9 MEUR debt

Aventum advised Stockmann in submitting a restructuring programme supporting restoration of Stockmann’s business operations and reorganisation of 736.9 MEUR debt

Restructuring proceedings of Stockmann has progressed in line with the schedule and the important milestone of filing the restructuring programme proposal was attained today. Coronavirus and related restrictions had a significant impact on Stockmann’s customer volumes, sales and cash flow in spring 2020 and the company filed for corporate restructuring on 6th April 2020. The restructuring programme proposal with the duration of 8 years was filed to the District Court on 14th December 2020. The programme is based on the continuation of Stockmann’s department store operations in Finland and in the Baltics, the sale and lease-back of the department store properties located in Helsinki, Tallinn and Riga and the continuation of Lindex’s business operations under the ownership of the Stockmann Group.

In addition, the programme defines terms to reorganise the outstanding debt consisting of EUR 433.5 million in secured restructuring debt, EUR 195.7 million in unsecured restructuring debt and EUR 108.1 million in hybrid bond debt. These terms include realisation of the company’s real estate assets and using proceeds primarily to pay secured debts, cut or equity conversion for 20% of unsecured debt, repayment schedule for 80% of unsecured, and equity conversion for 50% of hybrid bond. Stockmann A and Stockmann B shares will be combined as one share after the restructuring programme has been certified by the District Court.

Aventum Partners successfully supported Stockmann throughout the restructuring proceedings.