Department store V&D saved from bankruptcy
Owners, banks and landlords have reached an agreement on how to solve the short-term financial problems of V&D, a large, iconic Dutch department store. IEF Capital, which owns 12 of V&D’s locations, played an important role to break the deadlock in the negotiations between V&D, landlords and banks. The start of the rescue attempt were the interim proceedings between IEF Capital and V&D in which Jesse Zijlma and Ingrid Reimert represented IEF Capital in court.
After the proceedings, IEF Capital presented a rescue plan to the banks and to V&D to complete the financial shortfall. The landlords will contribute to the rescue through a discount on the rent of € 24 million. This discount is conditional. Up to and including July 2015, V&D shall transfer 57% of the amount to an escrow account. If V&D meets the conditions as set out in the settlement agreements, the total amount will be paid to V&D as a discount to the rent. On the basis of this plan the banks have granted credit to V&D. Shareholder Sun Capital invested € 30 million and lended another € 30 million to V&D. The deal ensures that the company has enough working capital for two years to pay wages, property rent and its suppliers’ bills. Jesse Zijlma was involved in the negotiations and drafted the settlement agreements between V&D and almost all landlords of the V&D-locations.