IVG Immobilien of Germany is the co-owner of the Gherkin building. The landmark is situated in London's City financial district. IVG said last Tuesday that it was looking for legal protection from creditors after it had failed to reach an agreement on restructuring its debt.
IVG went on a rapid expansion spree that left the company with a hefty EUR4 billion debt. In four weeks, IVG looked to close a deal with its creditors on swapping debt for equity. Earlier this month, the company said that it has come to a preliminary deal. However, the company said on Tuesday that the deal had not been completed.
IVG Immobilien filed for protection from its creditors with a court in Bonn. The company made use of a German legislation that stipulates a three month period giving companies a space to breathe while fixing their finances. IVG CEO Wolfgang Schaefers told reporters during a conference call that the filing became unavoidable in the end.
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