Apcoa’s Lenders to Vote on Restructuring After RulingJulie Miecamp
A U.K. court allowed Apcoa Parking AG to proceed to the next step in its effort to restructure about 640 million euros ($813 million) of loans after turning away a challenge by one of the car-park operator’s creditors.
Lenders including Centerbridge Partners LP will now review a proposal to reduce debt by almost 70 percent in exchange for taking control of the business. The Stuttgart, Germany-based company’s creditors will vote on the plan on Oct. 13, according to a court hearing today in London.
Judge Robert Hildyard rejected FMS Wertmanagement AoeR’s opposition to Apcoa’s plan and denied them permission to appeal “at this stage.” His ruling came a week after submissions from the parties began and the state-owned bank set up by the German government contended that the application would place it “into the same classes as the consenting lenders,” according to court documents.
Apcoa sought the U.K. court’s help as it said it was “not in a position to repay the facilities as required on the Oct. 25, 2014 maturity date,” according to a court document. Another hearing for the judge to decide whether to sanction the scheme of arrangement is scheduled for Oct. 20.
The company’s private-equity owner Eurazeo SA and more than 95 percent of lenders agreed in August to a deal that includes writing off more than 440 million euros of debt. Under a scheme of arrangement process, lenders have to support an agreement with a majority of as little as 75 percent.
Paris-based Eurazeo bought Apcoa for 885 million euros in 2007 in a transaction backed by 660 million euros of loans. The car-park operator has been in debt-restructuring talks with lenders since September 2013.