Saturday, June 1, 2013
Gherkin takes a squeeze
"German property company IVG Immobilien said it needs to cut its liabilities by up to 1.75 billion euros (Â£1.49 billion) as it struggles to refinance debts built up during an expansion spree. IVG, which manages assets worth 21 billion euros including a stake in London's landmark Gherkin office building, reported a 100 million euro net loss last year and skipped paying a dividend. It also deferred coupon payments on a hybrid bond". Overextended and over geared on property - a familiar story...and needs to "completely restructure its almost 4 billion euros in debt to make sure it has enough capital to refinance loans maturing this year and in 2014".