Bondholders initiate restructuring talks with iQera amid financial challenges

Key Takeaway

• iQera Group SAS faces financial restructuring talks, with bondholders hiring Houlihan Lokey and Gibson Dunn for advice.
• Financial challenges highlighted by weaker gross collections and high indebtedness prompt exploration of long-term strategies.
• Bondholder consortium includes Alcentra, UBS Asset Management, ICG, and Tikehau Capital, indicating significant investor concern.

Bondholders Seek Restructuring Talks

A consortium of bondholders of iQera Group SAS, a French debt collection agency, has initiated steps to engage in balance sheet restructuring discussions with the company. This move comes in the wake of iQera's announcement of its annual report on April 22, which prompted dialogue between the company and certain bondholders regarding its financial health. The bondholders have appointed Houlihan Lokey Inc. and Gibson Dunn & Crutcher as their financial and legal advisers, respectively. The group of noteholders includes prominent investment firms such as Alcentra Ltd., the Credit Investments Group at UBS Asset Management (formerly known as Credit Suisse Asset Management), Intermediate Capital Group Plc, and Tikehau Capital.

iQera's Financial Challenges

iQera has faced financial difficulties, as evidenced by its weaker gross collections in the previous year. The company's performance has been adversely affected by the prevailing interest-rate environment, coupled with its significant level of indebtedness. These factors have constrained iQera's capacity to make necessary investments to safeguard future cash flows and support its medium and long-term development. In response to these challenges, iQera has expressed its intention to explore long-term options in collaboration with its shareholders and stakeholders, with the support of external advisers.

Stakeholder Engagement

In an effort to address its financial situation, iQera has been in discussions with its bondholders following the release of its annual report. A representative from iQera confirmed that the company is deliberating on various long-term strategies with the involvement of its shareholders and all stakeholders. This collaborative approach aims to identify viable solutions to ensure the company's sustainability and growth. The engagement of legal and financial advisers by the bondholders signifies a structured approach to the restructuring talks, indicating the seriousness of the situation and the commitment of all parties to find a resolution.

Ownership and Advisory Silence

iQera is jointly owned by BC Partners and Montefiore Investment, two investment firms with a stake in the company's future. Despite the unfolding situation, spokespeople for BC Partners, Houlihan Lokey, Alcentra, ICG, Tikehau, and UBS Asset Management have declined to comment on the matter. Additionally, a representative for Gibson Dunn was not immediately available for comment, and Montefiore did not respond to a request for comment. This silence from the advisory and ownership sides underscores the sensitive nature of the restructuring discussions and the potential implications for iQera's future.

Management Quotes

• A representative of iQera:

  "Following the release of our annual report on April 22, there were discussions held with certain bondholders to explain the situation. As mentioned in the annual report, the company is deliberating with its shareholders and all stakeholders on long-term options with the assistance of external advisers."