Silver Point Capital and Strategic Value Partners, both investment firms based in Greenwich, Connecticut, will hold sizable stakes in QVC Group after the West Chester-based shopping giant emerges from bankruptcy, writes Jeff Blumenthal for the Philadelphia Business Journal.
According to Joshua Sussberg of Kirkland & Ellis, who represents QVC Group in the bankruptcy process, the two firms acquired very large positions in the company’s $2.9 billion revolving credit facility.
That debt will be converted into equity along with $2.1 billion in QVC notes owned mostly by Silver Point and New York firms Oaktree Capital Management and GoldenTree Asset Management as part of the company’s plan to emerge from Chapter 11 protection as a restructured entity later this year.
At a hearing last week in U.S. Bankruptcy Court in Houston, Sussberg and his colleagues told the judge there is consensus among stakeholders to reduce QVC Group’s obligations, enabling it to emerge from Chapter 11 with just over $1 billion in debt and equity “dispersed amongst our lenders and note holders.”
“The company will be lean, mean, and able to take advantage of the changes in the social current and all the different mediums on which it operates,” said Sussberg.
Read more about investments firms taking an interest in QVC Group ownership in the Philadelphia Business Journal.
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