Galapagos accidentally pays bond coupon as unsecured creditors reject deal

By Owen Sanderson
03 Jul 2019

German heat exchanger firm Galapagos, which is deep in negotiations over a debt restructuring, accidentally paid a coupon to bondholders last month, despite a deal with secured creditors to waive the payment ahead of a bid to tackle its debt load. Meanwhile, unsecured bondholders rejected proposals from the company and its secured creditors, leading to a threat from Galapagos that the bondholders will be wiped out.

Galapagos unveiled its restructuring proposals on June 7, which would have seen the firm’s owner, Triton, inject €140m of new subordinated financing and secured bondholders swapped into new debt.

Unsecured creditors were offered little cash, but a chance to co-invest alongside Triton in the new subordinated debt and ...

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