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Apollo Global swoops on embattled music retailer HMV

17 Dec 2012

Apollo Global Management is reported to have bought a chunk of HMV’s loans in a bid to eventually seize control of the stricken British music retailer.

The US buyout giant is understood to have acquired more than £20m of HMV’s senior debt from Allied Irish Bank, equivalent to more than 10 per cent of the company’s outstanding loans, the Sunday Times reported.

The firm is also looking to buy additional loans that would eventually see it become one of the company’s largest creditors, the report said.

In its interim results two weeks ago HMV said it was likely to breach key loan agreements in January and April, which sent shares plummeting 39 per cent to 2.49p – valuing the company at just £10m.

The announcement also included news of a £37.3m first-half loss, which the company blamed on poor sales in the run-up to Christmas, the report added.

Apollo is also understood to have partnered with JC Flowers to buy 316 bank branches that regulators are forcing UK state-backed lender Royal Bank of Scotland Group to sell.

The branches are said to have a book value of about £1bn.

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