HEMA’s Debt Restructuring


De Brauw Blackstone Westbroek advised on the successful restructuring of HEMA’s capital structure. Slaughter and May, Cravath, Swaine & Moore and Latham & Watkins also advised on the deal.

HEMA implementated a complex and multi-jurisdictional debt restructuring and recapitalisation process. This process was successfully completed on 19 October 2020. As a result, HEMA’s existing bond debt of €750 million was more than halved to €300 million and its liquidity position greatly improved with an additional bond financing of €42 million.

On 15 June 2020, after extensive negotiations, HEMA reached an agreement with its banks and a group of noteholders holding approximately 62% of the €600 million senior secured notes and more than 50% of the €150 million senior notes, to reduce its debt in a controlled manner to safeguard the future of the company. The restructuring was implemented through court proceedings in three jurisdictions: a scheme of arrangement in England, a Chapter 15 proceeding in the United States and security enforcement proceedings in the Netherlands. The recapitalisation was achieved through a number of debt-for-equity swaps.

The existing debt structure, including NY law and UK law governed publicly traded notes and bank financing, added particular complexity to the transaction.

Goldman Sachs International acted as financial adviser.

The De Brauw team, working on finance & restructuring, corporate advisory, capital markets, competition, employment and employment benefits, tax, M&A and financial regulatory, was led by restructuring partner Ferdinand Hengst (Picture) and included Ferdinand Hengst, Reinout Vriesendorp, Niek Biegman, Tristan Peters, Laurens Peters, Sebastian Hinse, Gilles Becker, Thijs Elseman, Roos de Blécourt, Chris Noordam, Kirsten Lagerweij, Laurens van de Ven and Hafida Farouk, Wiebe Dijkstra, Joppe de Bruijn, Pim Siemons, Dana Horvath and Maarten van der Weijden, Reinout Vriesendorp, Berto Winters, Charissa Veldman, Hylke ten Bruggencate, Mick Gerrits, Dennis de Feij, Geert Lokhorst, Malte Malycha, Rein Ferwerda and Jeroen van der Schrieck, Mark Rebergen, René van Tricht, Peter Nolten, Daan Gieben and Tijmen van de Leemkolk, Janneke van der Kroon, Barbara Kloppert and Rik van Haeringen, Arne Grimme, Heather Giannandrea, Chaggai Kon and Sasja Uijldert, Mariken van Loopik and Tjalling Waterbolk and Maikel van Wissen.

The Latham team advising the banks – 22 banks including a consortium led by Credit Suisse – was led by London restructuring and special situations partners Yen Sum, Helena Potts, and associates Fergus O’Domhnaill, Chrissy Vassiliou, and Annabel Cawood.

Involved fees earner: Joppe de Bruijn – De Brauw Blackstone Westbroek; Daan Gieben – De Brauw Blackstone Westbroek; Sebastian Hinse – De Brauw Blackstone Westbroek; Geert Lokhorst – De Brauw Blackstone Westbroek; Hylke ten Bruggencate – De Brauw Blackstone Westbroek; Laurens van de Ven – De Brauw Blackstone Westbroek; Gilles Becker – De Brauw Blackstone Westbroek; Niek Biegman – De Brauw Blackstone Westbroek; Dennis de Feij – De Brauw Blackstone Westbroek; Wiebe Dijkstra – De Brauw Blackstone Westbroek; Thijs Elseman – De Brauw Blackstone Westbroek; Hafida Farouk – De Brauw Blackstone Westbroek; Rein Ferwerda – De Brauw Blackstone Westbroek; Mick Gerrits – De Brauw Blackstone Westbroek; Heather Giannandrea – De Brauw Blackstone Westbroek; Arne Grimme – De Brauw Blackstone Westbroek; Ferdinand Hengst – De Brauw Blackstone Westbroek; Dana Horvath – De Brauw Blackstone Westbroek; Barbara Kloppert-van Duren – De Brauw Blackstone Westbroek; Chaggai Kon – De Brauw Blackstone Westbroek; Kirsten Lagerweij – De Brauw Blackstone Westbroek; Malte Malycha – De Brauw Blackstone Westbroek; Peter Nolten – De Brauw Blackstone Westbroek; Chris Noordam – De Brauw Blackstone Westbroek; Tristan Peters – De Brauw Blackstone Westbroek; Laurens Peters – De Brauw Blackstone Westbroek; Mark Rebergen – De Brauw Blackstone Westbroek; Roos de Blécourt – De Brauw Blackstone Westbroek; Pim Siemons – De Brauw Blackstone Westbroek; Sasja Uijldert – De Brauw Blackstone Westbroek; Tijmen Van de Leemkolk – De Brauw Blackstone Westbroek; Janneke van der Kroon – De Brauw Blackstone Westbroek; Jeroen van der Schrieck – De Brauw Blackstone Westbroek; Maarten van der Weijden – De Brauw Blackstone Westbroek; Rik van Haeringen – De Brauw Blackstone Westbroek; Mariken van Loopik – De Brauw Blackstone Westbroek; René van Tricht – De Brauw Blackstone Westbroek; Charissa Veldman – De Brauw Blackstone Westbroek; Reinout Vriesendorp – De Brauw Blackstone Westbroek; Tjalling Waterbolk – De Brauw Blackstone Westbroek; Berto Winters – De Brauw Blackstone Westbroek; Fergus O’Domhnaill – Latham & Watkins; Helena Potts – Latham & Watkins; Yen Sum – Latham & Watkins; Chrissy Vassiliou – Latham & Watkins; Maikel van Wissen – Linklaters;

Law Firms: De Brauw Blackstone Westbroek; Latham & Watkins; Linklaters;

Clients: Credit Suisse; HEMA B.V.;