LONDON Aug 7 Shares in German property company
IVG rose by almost a third on Wednesday following
talks with creditors that could lead to a last-minute debt deal
for the group.
IVG, which runs a fund that co-owns London's landmark
Gherkin tower, had failed to strike a deal last week to
restructure some 4.2 billion euros ($5.59 billion) of debt. But
last-ditch talks with creditors about a debt-for-equity swap
have taken place and an agreement is now on the horizon though
not guaranteed, two sources close to the talks told Reuters.
"At the last second, an agreement has turned up as within
the realm of possibility," one of the sources said.
The firm's Chief Executive Wolfgang Schaefers has said he
would seek creditor protection to buy breathing room if no deal
A number of buy-out fund operators including Apollo
and TPG Capital have bought debt in the Bonn-based
company to gain a negotiating position in talks and potentially
take control of the company via a debt-for-equity swap.
No single company amassed a large enough stake to take
control on its own and the large number of creditors has
complicated the task.
IVG built up debts during its rapid expansion.
Its shares were up 31 percent at 0.047 euros at 1024 GMT,
after plunging 92 percent this year against the backdrop of the
debt restructuring talks.
IVG declined to comment.