A Chapter 11 process refers to Chapter Eleven in the US Bankruptcy Act and makes it possible for companies to restructure their economy. Among other things, the process can, under a short period of time, stop collection claims from creditors.
Debt-ridden Intrum has been struggling with problems for a while, and the share has plummeted by approximately 60 percent in 2024.
At an extraordinary general meeting in November, the board was given a mandate to carry out a new issue of shares to, among other things, pay off loans – provided that the company's application for bankruptcy protection under Chapter 11 is approved. Intrum states that the company intends to apply for a Swedish company reconstruction next year.
"After completing the recapitalization transaction, Intrum expects to have good scope for action to deliver in line with the business plan, which positions the business for long-term success," the company writes, among other things, in the press release.
