Intrum initiates court supervised process in the U.S. to implement its Recapitalisation Transaction having received overwhelming support from creditors for its pre packaged[...]

• The Recapitalisation Transaction will significantly improve and strengthen Intrum's capital structure and position it for long-term growth and success
• Intrum expects to emerge from the pre-packaged Chapter 11 and the Swedish company reorganisation processes with ample runway and liquidity to execute its business plan
• Chapter 11 plan approval from the U.S. Bankruptcy Court expected before end of 2024
• Intrum continues to operate as normal with employees providing critical services for clients and customers
• The transaction limits dilution to shareholders to 10% along with 10% reduction in notes

Intrum AB ("Intrum" and together with its subsidiaries, the "Group") is pleased to announce that it has today taken an important next step to implement its Recapitalisation Transaction, as previously described in the press releases issued on 11 July 2024, 30 July 2024, 15 August 2024, 16 August 2024, 30 August 2024, 18 September 2024, 18 October 2024 and 12 November 2024 (together the "Announcements"). Unless given a different meaning in this release, terms defined in the Announcements have the same meaning when used here.

Having secured the required consents from its creditors to confirm its proposed Chapter 11 reorganisation plan (the "Plan"), Intrum has filed a voluntary petition for reorganisation pursuant to Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas to seek approval of its Plan along with motions to, among other things, continue its ordinary course operations. Approval of the Plan is currently expected by the end of the calendar year.

Chapter 11 is a well-established legal framework that businesses with operations in multiple jurisdictions can use to implement recapitalisation transactions.

During the Chapter 11 case, and any other relevant implementation phase of the Recapitalisation Transaction, the Group intends to continue to operate as normal with no disruption of service with maximum focus on delivering the best services to its clients. Furthermore, Intrum has sufficient liquidity to support the Group's continued operations and execute on its business plan throughout the Chapter 11 case and the Swedish company reorganisation processes. The Group expects to continue to pay its financial obligations in the ordinary course of business, without interruption. The Group will remain in possession and control of its assets, retain its existing management team and board of directors, and maintain its ordinary operations in all other material respects.

Andrés Rubio, President and Chief Executive Officer of Intrum, said, "Today, with support from the overwhelming majority of our key stakeholders, we are making significant progress towards the implementation of our recapitalisation transaction. This pre-packaged, court-supervised Chapter 11 process is a positive step for our company and will position Intrum - and all of our stakeholders - for future success."

Solicitation for Intrum's Plan was launched on 17 October 2024 (Central Time) and the voting deadline expired on 13 November 2024. Of those that voted on the Plan, 100% (by value) of the Group's RCF lenders and 82% (by value) of the Group's Noteholders have voted in favour. The required majority for each class under a Chapter 11 plan is 66.67% in amount (of allowed claims) by class.

In addition to the Chapter 11 case, Intrum is intending to complete a Swedish company reorganisation during Q1 2025, to ensure the results of the Chapter 11 process are given equal effect in Sweden. The effectiveness of the Chapter 11 Plan is conditional upon, amongst other things, the consummation of the Swedish company reorganisation. The Recapitalisation Transaction is expected to become effective during Q1 2025, following the satisfaction of all conditions precedent. In connection with the filing, Intrum has also agreed to certain amendments to its Lock-Up Agreement, Backstop Letter, and the Plan, which facilitate implementation of the Recapitalisation Transaction after 31 May 2025 if there are delays to the implementation process caused by the Swedish company reorganisation process.

As set out in the notice to the extraordinary general meeting announced by Intrum on 1 November 2024, the Recapitalisation Transaction will result in the noteholders receiving 10% of the ordinary shares in Intrum on a fully diluted basis, as a condition to noteholders writing down 10% of their debt holdings. The share issuance is subject to approval by the extraordinary general meeting of shareholders.

An application has been lodged at the Stockholm District Court purporting that the amendments of the general terms and conditions of the outstanding note loans maturing on (a) 3 July 2025 with loan number 115 (ISIN: SE0013105533), (b) 12 September 2025 with loan number 111 (ISIN: SE0013104080) and (c) 9 September 2026 with loan number 113 (ISIN: SE0013360435) (the "MTN Notes") resolved by the noteholders' meetings, as announced by Intrum on 15 November 2024, are void.

Intrum rejects any assertions that the amendments of the general terms and conditions of the MTN Notes are void and will take all measures to protects its interest and those of its stakeholders. Intrum is confident it has sufficient support to implement the Recapitalisation Transaction.

Further information

Further details of the Chapter 11 case can be found at the following website:
https://cases.ra.kroll.com/IntrumAB

The Chapter 11 case relates to, amongst other debt instruments, the senior unsecured notes and MTNs due from 2025-2028 with the following identifiers: XS2211136168 / XS2211137059; XS2034925375 / XS2034928122; XS2052216111 / XS2052216202; XS2566292160 / XS2566291865; SE0013105533; SE0013105525; SE0013104080; SE0013360435; XS2093168115.

For further information on the Chapter 11 and/or the Recapitalisation Transaction, please contact Houlihan Lokey, who act as financial advisers to Intrum at the email addresses below.

If you experience any issues in accessing the website, please contact the Information Agent at the email address below.

Contact Details:

Kroll Issuer Services (as Information Agent): [email protected]

Houlihan Lokey (as advisers to Intrum): [email protected]

Media Inquiries:

Brunswick Group (as advisers to Intrum)

Azadeh Varzi, Partner
Freya Semken, Director
+44 (0) 20 7404 5959

Hedda Söderström, Associate
+46 (8) 410 32 180

[email protected]

DISCLAIMERS

This press release was prepared solely for information purposes and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Likewise, it does not provide and should not be treated as providing investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Recipients should not consider it as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.

No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained in this press release. Neither the Group nor any of its advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this press release or its contents.

This press release may include forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as "believe", "expect", "anticipate", "may", "assume", "plan", "intend", "will", "should", "estimate", "risk" and or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's plans, objectives, assumptions, expectations, prospects and beliefs and statements regarding other future events or prospects. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements reflect the Group's current expectations, intentions or forecasts of future events, which are based on the information currently available and on assumptions made by the Group.

The forward-looking statements and information contained in this announcement are made as of the date hereof and the Group is under no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws. All subsequent written or oral forward-looking statements attributable to the Group, or persons acting on the Group's behalf, included in but not limited to press releases, reports and other communications, are expressly qualified in their entirety by the cautionary statements contained throughout this press release.

About Intrum

Intrum is the industry-leading provider of Credit Management Services with a presence in 20 markets in Europe. By helping companies to get paid and supporting people with their late payments, Intrum leads the way to a sound economy and plays a critical role in society at large. Intrum has circa 10,000 dedicated professionals who serve around 80,000 companies across Europe. In 2023, income amounted to SEK 20.0 billion. Intrum is headquartered in Stockholm, Sweden and publicly listed on the Nasdaq Stockholm exchange. For more information, please visit www.intrum.com.