Orrick’s Paris Restructuring team advised Blue Mountain on the second restructuring of Vivarte, a French retailer of fashion, footwear and leather goods.
Three years after the first restructuring, which allowed the reduction of its debt from €2.8 billion to €800 million and the injection of €500 million of new money, Vivarte has finalized its second restructuring.
Vivarte, its shareholders and its 170 lenders have equitized the whole €800 million reinstated debt and reorganized the group’s shareholding and governance. All of the “new money” bonds and their capitalized interest, for a total amount of €608 million, have been secured by a double trust (fiducie sûreté) on the group’s securities, which should allow the group to anticipate and limit, in case of any potential new difficulties, a third financial restructuring. Preferred shares have also been issued to the new money bondholders.
Vivarte has also renegotiated its operational credit facilities with a pool of 10 banks and disposed of or initiated the disposal of some of its brands (CVC, Défi Mode, Pataugas, Kookaï). Other divestments are under consideration.
In less than three years, shareholders and lenders have deleveraged €2.84 billion of debt, a record amount in the European LBO market.
This restructuring allows Vivarte to clean up its economic situation and begin its recovery plan.
The Orrick team was led by Saam Golshani
and included Aurélien Loric
and Alicia Bali
(restructuring and corporate), Emmanuel Ringeval
(finance) and Anne-Sophie Kerfant