CHR Bygga Bostäder is one of many Swedish housing developer that has had financial problems the recent years.

On 23 November 2018 the company published that the Board of Directors of the Company and its subsidiary CHR Bygga Bostäder Entreprenad AB each had resolved to prepare a balance sheet for liquidation purposes.

On 10 December 2018 the company issued a notice for a general meeting to consider whether it should go into liquidation.

The Company took measures in order to restore the equity in Entreprenad by way of lowering the share capital in Entreprenad and relocating assets within the group as set out and contemplated by the term sheet for a recapitalisation with a view to restore the equity in the Company.

The term sheet is entered into, originally on 31 December 2018 with shareholders representing 73 per cent of the outstanding shares and votes in the company, holders representing ca 58 per cent of the outstanding bonds and a separate creditor.

The Company has now entered into the term sheet for the contemplated restructuring of the bonds and a company reorganisation of Entreprenad with a view to restore the equity in the companies and avoid a situation where Entreprenad must be declared bankrupt due to insolvency.

The implementation of the transactions contemplated by the term sheet is further conditioned upon events occurring which are outside of the company’s control.

The term sheet involves a debt write-down across the company and its subsidiaries and a number of changes to the capital structure and governance of the company, including some principal changes, which the term sheet bondholders support and consider to be necessary to recover as much value as possible of its claim via the bond (which otherwise may be extinguished or of considerably less value).