Thomson investors clear restructuring plan

Thomson SA shareholders backed the firm’s proposed debt restructuring plan, staving off the board’s threat that the commercial court of Nanterre would impose a plan on debtors and investors alike.
As part of the plan, Thomson’s name is now changed to…

Thomson SA shareholders backed the firm’s proposed debt restructuring plan, staving off the board’s threat that the commercial court of Nanterre would impose a plan on debtors and investors alike.

As part of the plan, Thomson’s name is now changed to Technicolor, while the roles of chairman and CEO will be separated.

Shareholders were asked to vote on the proposed transaction on January 27, roughly a month after the group’s creditors, suppliers and noteholders met to approve the plan.

However, initial difficulty in gathering enough backing from shareholders had led Thomson to file for court protection from creditors last year, under a procedure known as “sauvegarde”. This will be lifted when the restructuring process starts later this month.

Thomson previously said the plan, which involves a E348m capital increase, a debt-for-equity swap and a bond buy-back, would reduce its E2.48bn debt by 45% to E1.5bn, all the while hugely diluting the group’s shares.

Perella Weinberg Partners and Ph. Villin Conseil are advising Thomson on its financial strategy.

Deutsche Bank is advising Thomson on the sale of Premier Retail Network (PRN) and Grass Valley. Thomson was rumoured to have entered talks with US-based Avid Technology for a potential sale of the latter.