Intrum’s Lock-Up With Creditors Risks Curbing Swaps Payout (1)

Jan. 10, 2025, 8:52 AM UTC

Intrum AB’s lock-up agreement with creditors risks curtailing the size of the payout investors can expect from the insurance they bought against a default by the Swedish debt collector.

Investors holding around 73% of the company’s bonds signed an agreement in support of its restructuring proposal, which prevents them from trading the bonds. That effectively limits the number of notes available for an auction due later this month to settle the firm’s credit default swaps.

Credit default swaps were triggered after the company underwent a Chapter 11 bankruptcy process in the US. As of early December, the net ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.