German real estate company IVG Immobilien (IVGG.DE), co-owner of the landmark 'Gherkin' office building in London's City financial district, said on Tuesday it was seeking protection from creditors after failing to reach an agreement over the restructuring of its debt.
IVG has about 4 billion euros (£3.38 billion) of debt after a rapid expansion spree and had sought for weeks to agree with creditors on swapping some of the debt for equity...
Shares in IVG, which have lost 96 percent of their value this year, extended losses to trade down 8 percent at 0.077 euros by 4.30 p.m. British time on Tuesday.
One way or another this will end up with a debt-for-equity swap, as the article explains. But it's nice to see land speculators fall on their faces every now and then instead of being bailed out by the government every time. The perils of speculating abroad, I guess. Always best to speculate on land in your own country.
H/t Alan at HPC.
Wednesday, 21 August 2013
My latest blogpost: Bankruptcy Of The WeekTweet this! Posted by Mark Wadsworth at 08:01