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Home News Intrum’s Chapter 11 Plan Faces Setback As Creditors Reject Settlement

Intrum’s Chapter 11 Plan Faces Setback As Creditors Reject Settlement

by Celia
Intrum's Chapter 11 Plan Faces Setback As Creditors Reject Settlement

Intrum, Europe’s largest debt collection company, has announced that it has been unable to reach a settlement with a group of creditors who are opposing its Chapter 11 bankruptcy restructuring plan. Despite efforts to negotiate, Intrum confirmed on Tuesday that it will move forward with seeking confirmation of its pre-packaged Chapter 11 plan in U.S. federal court.

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The company, which filed for Chapter 11 protection in the United States last month, is attempting to restructure its substantial debt load, which stood at 49.4 billion Swedish kronor ($4.53 billion) as of the end of September. However, the 2025 Ad Hoc Group, a group of creditors, has objected to the proposed restructuring plan, posing significant hurdles to the company’s efforts to emerge from bankruptcy.

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Intrum’s filing of a pre-packaged Chapter 11 plan had initially been seen as a more efficient route for restructuring, with a proposed agreement already set before entering the bankruptcy process. However, the objections from the 2025 Ad Hoc Group have created roadblocks, challenging key elements of the plan. Despite this, Intrum remains committed to the process and is now preparing for a Chapter 11 hearing on Tuesday in the United States Bankruptcy Court for the Southern District of Texas.

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The failure to reach a settlement signals that the company’s bankruptcy proceedings could be prolonged, and the ultimate outcome will likely hinge on the court’s ruling. Intrum’s ability to secure approval of its restructuring plan remains uncertain, as it faces legal opposition from creditors who argue that the proposed plan does not adequately address their concerns.

This development underscores the complexities of corporate bankruptcy and debt restructuring in the global financial landscape, especially as companies with substantial debt navigate the legal processes to emerge from financial distress.

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