London’s landmark Gherkin skyscraper enters receivership

London’s Gherkin skyscraper enters receivership

London’s landmark Gherkin office tower continues to be put into receivership by its creditors, accounting firm and shared receivers Deloitte said on Thursday, paving the way to get a possible partial sale of the skyscraper.

Germany’s IVG Immobilien, which co-owns the 40-storey Gherkin with Evans Randall Ltd, filed for bankruptcy last year after decades of increasing debt and cost overruns.

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London’s Gherkin skyscraper enters receivership

Among Germany’s most widely known home companies, IVG wanted safety this past year from its creditors after failing to achieve an agreement within the restructuring of its debt. It’s since agreed a debt-for-equity swap with its lenders.

Co-owner Evans Randall said on Thursday it had been prepared to commit further value in to the building however the company have been struggling to agree with a brand new economic framework with IVG because of the German partner’s finances.

“The Gherkin is something that people are strongly oriented to keep our participation in and a powerful, well-let resource,” said an spokesman for Evans Randall, adding that talks were ongoing.

Deloitte stated that because it was initially released negative interest-rate and currency movements had caused the Gherkin’s overall debt, that will be kept in multiple currencies like the Swiss franc, to improve materially.

“The senior lenders were unwilling to appoint a receiver but thought they’d no choice because of the continuing foreclosures, that have remained uncured for over five years,” Deloitte partner Neville Kahn and combined recipient said.

There were also “issues the consumers’ not enough fairness within the deal had caused their offers to become misaligned with all the lenders,” he explained.

An image of London’s skyline with its unique curved-glass form which gave it its Gherkin handle, the skyscraper was offered to Evans and IVG Randall in 2007 for 600 million pounds and was constructed by reinsurer Swiss Re in 2004.

In 2012, IVG said it had been valued at 470-531 million pounds.

The building, which Deloitte said remains well-leased as well as in “prize situation”, rests on the webpage of the former Baltic Exchange within the City financial district.

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