V&D rescued from bankruptcy; a reconstruction of how the retail chain was bailed out at the last minute
12 February 2015

 

The owner, banks and real estate owners have reached agreement on a bailout of V&D. The owners of the retail real estate are contributing to the bailout with a rent discount of € 24 million. This rent discount is conditional. V&D must transfer 57 percent of the rent to a special escrow account through the end of July 2015. If V&D complies with all its obligations, the accrued amount will be paid out to V&D as a discount on its rent.
 
The agreement between the real estate owners and V&D was part of the basis on which the banks extended further credit to V&D and shareholder Sun Capital invested € 30 million in V&D and provided another € 30 million to V&D as a loan. Tomas Steenmetser represented a very large group of parties that lease real estate to V&D. Together with Jesse Zijlma of BarentsKrans (lawyer for IEF Capital; the party leasing the most real estate to V&D), Steenmetser drafted the settlement agreement reached between V&D and almost all the parties leasing buildings to V&D in the Netherlands. They also coordinated the establishment of all the agreements. Tomas and his team played a key role in concluding the matter. The vigorous approach by the investors involved managed to save an icon for the Dutch retail market that employs some 11,000 people.


Lawyer(s) involved: