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PWT Group A/S

PWT Group A/S saved from bankruptcy by extensive restructuring process

 

Case

PWT Group A/S saved from bankruptcy by extensive restructuring process

The largest compulsory composition in Danish history in an in-court restructuring process ended up saving the Danish company PWT Group A/S from bankruptcy.

PWT Group A/S owns Denmark’s largest menswear chain Tøjeksperten, the clothing chain Wagner and the JUNK de LUXE, Bison and Lindbergh brands.

PWT Group A/S found itself in financial difficulties due to the Corona crisis which led to all 84 shops being shut down temporarily and 86% of the company’s 575 employees being sent home.

The restructuring of the company was completed in connection with an extensive and complex restructuring process under considerable time pressure. The recovery plan meant that the existing creditors accepted preliminary dividends of 20% of their receivables with the possibility of receiving up to a total of 30%.

Concurrently, the shop network and the general staff were trimmed, and PWT Group A/S’s ownership structure was changed to consist of members of the management and several external investors.

The new owners contribute DKK 20m in new capital and the company’s bank provides new financing of DKK 125m.

The restructuring plan helps secure the future operation of a strong, trimmed business, and it was adopted with solid support from the company’s creditors at a creditors’ meeting.

For further information, please read the press release from PWT Group A/S.

Andreas Kærsgaard Mylin, attorney and head of Accura’s Restructuring & Insolvency Team, was appointed as restructuring administrator by the Bankruptcy Court of Aalborg and acted as one of the two restructuring administrators during the entire process.