HMV debt purchased by 'restructuring specialist'
Restructuring specialists Hilco have purchased HMV's debts, the first step necessary for any other company to take control of the struggling high street retailer.
HMV, or at least its UK operation, owed a sum in the region of £176 million to its lenders Lloyds and Royal Bank of Scotland but because the company is in administration Hilco will have paid a sum significantly lower than this to acquire its debt.
Interestingly enough Hilco also bought out HMV Canada in 2011, though they haven't yet bought the UK business. They said in a statement: "Hilco UK confirms that it has acquired HMV's debt from the group's lender. It has not bought the business itself."
"Hilco believes there to be a viable underlying HMV business and will now be working closely with Deloitte who, as administrators, are reviewing the business to determine future options", the statement continued.
Meanwhile, HMV's UK stores will again accept gift vouchers. Many customers in both the UK and Irish stores were told that their gift vouchers were invalid, even if they were just purchased over the busy Christmas period.
Story by John Balfe | 15:54 | Wednesday 23rd January 2013 | Music News
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