Intrum, Europe’s largest debt collection and management company, will file for Chapter 11 bankruptcy protection in the US, according to Reuters.

The company submits the request voluntarily, as stated, in a attempt to restructure its debt. Intrum is in dire straits as the pandemic, the energy crisis and two-decade high interest rates have created a wave of bad loans, raising concerns about its net debt, which has reached $4.69 billion. .at the end of June.

“Intrum believes that it will emerge from the Chapter 11 process and the reorganization process of the Swedish company with sufficient liquidity to implement its business plan, but also well-positioned for long-term growth and success”the company says in a statement.

Intrum shares fell 2.8% on the Stockholm Stock Exchange.

Intrum had won support for the debt restructuring from 73% of its bondholders, which qualifies for Chapter 11 proceedings but falls short of the 75% required to qualify for a simpler process under English law or the 90% threshold for a fully voluntary process.

The company expects to begin the Chapter 11 process by mid-November and estimates that it will receive approval for the restructuring plan by the end of the year, it added, with the restructuring being implemented during the first quarter of next year.

Greece is not affected

According to information, the process of capital strengthening and refinancing of the Group it does not affect its activity – and the activity of Intrum in Greecewhich consistently records high performances at all levels.

It is noted that the turnover of Intrum in Greece for the year 2023 amounted to 223 million euros. The company offers viable solutions to hundreds of thousands of borrowers, while more than 90% of cases involve consensual solutions. In the settlement process through the out-of-court mechanism, in the most numerous category of settlements (debts over 250,000 euros, approval is >80%).