UK - Baugur to offload Debenhams stake

It has been said that a cash call for Debenhams would be more likely to happen once Baugur has exited the buisiness, with shareholders in the business reported to have refused to back a capital raising if they were expected to take up Baugur's risks. CVC and TPG both hold a stake in the business.

Baugur owns 6.5% of Debenhams diretly and 6.7% through the Unity investment vehicle, in which it holds a stake of 42.5%. Debenhams' debts have been reported to stand at £900m, £100m of which are due to be paid back in May 2009.

Baugur filed for bankruptcy earlier in March 2009 after the Islandic government refused to extend a moratorium which is part of the country's legal process for creditor protection.

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