Viaplay Shareholders Back Comprehensive Restructuring Plan Amidst Business Challenges
Viaplay, the Swedish streaming company, received the green light from its shareholders on Wednesday for a strategic restructuring plan aimed at averting a potential collapse. This initiative, set in motion last December, is a response to the challenging business landscape marked by escalating living costs impacting consumer demand.
To fortify its position, Viaplay’s multifaceted strategy involves both an infusion of fresh equity and a meticulous debt restructuring plan. Shareholders enthusiastically voted in favor of the comprehensive plan, which entails injecting 4 billion Swedish crowns ($391 million) in new equity, a substantial debt write-down of 2 billion crowns, and a renegotiation of terms for debts totaling 14.6 billion crowns.
A content Viaplay issued a statement expressing contentment with the shareholders’ overwhelming approval, affirming that “the recapitalization program can now proceed according to plan.” Despite this positive development, the company’s shares have faced tumultuous times, witnessing a staggering 97% decline over the past year. However, there was a glimmer of optimism post-announcement, with shares experiencing a 7% uptick by 1034 GMT.
The heart of Viaplay’s recapitalization plan lies in the issuance of 4 billion new shares, each priced at 1 Swedish crown. Notably, this comes at a noteworthy 96% discount compared to the closing price on Nov. 30, just before the unveiling of the restructuring plan. The share issuance involves two distinct components: a targeted issuance of shares valued at 3.1 billion crowns to specific investors and a rights issue constituting the remaining 0.9 billion crowns, as outlined in the company’s detailed December statement.
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