Dane Jesper Melin has made a fortune with debt-collecting company Melin Collectors, which collects money from GP patients across the country. Recently, the company changed its name to Convene, but now it’s not going well anymore.
In an announcement to the stock exchange on Tuesday evening, a bond holders of Convene’s owner called Hi Bidco to a meeting with other lenders.
Who is the holder of the bond does not appear from the letter. However, what is emerging is that the lender is very concerned about the company’s capital structure.
Hi Bidco has borrowed 1.35 billion NOK in the bond market, and now the loans are nearing maturity. The bondholder will ask other lenders to send a letter to the company to sort out the “urgent and dangerous financial situation” the company is in.
Uncertainty about operations
Hi Bidco is wholly owned by Hi Midco. Jesper Melin Codee Holding Company is the largest owner with a 40 percent stake. Chairman Johan Michaelsen owns just under 22 percent, while statistician and investor Kjetil Myrlid Aasen owns 19 percent.
In the notice of holding the meeting, the bondholder refers to the annual accounts for 2021, which were completed at the end of April. There, the company’s auditor, PwC, announced significant uncertainty related to continuing operations.
The auditor specifically refers to the two bond loans due in October 2022 and January 2023.
According to the accounts, the company has begun the process of refinancing the bond loans.
Chairman Johann Michaelsen at Hi Bidco did not respond to DN’s inquiries. Nor Jesper Millen.
Release billion values
In 2017, the company then called Melin Medical acquired the order The two bond loans amounted to NOK 1.35 billion in a deal that released large amounts of value to the owners.
The operation was carried out by the old owners who sold the entire system at huge profits to a new holding company largely controlled by the same owners. The purchase price was financed almost entirely by the loan.
The company obtained two bond loans to finance the operation. In the process, Melin Medical was valued at NOK 1.7 billion.
Unsustainable capital structure
The bond holder has written a draft of the letter he wishes to send to the company. There, she expresses concern that the company has not been able to find any solutions for bond loans.
At the same time, the lender describes the company’s capital structure as “unsustainable.”
The debenture holder will also remind board members of the personal responsibility they have to protect the interests of creditors, and make reference to Norwegian legislation.
According to the company’s 2021 annual report, the company lost NOK 87 million before tax last year. It was a decline from 2021, when the loss was NOK 71 million before tax. (Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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