Embracer Group paid creditors $300 million, but its debt is still very large
The Swedish holding company Embracer Group has reduced its debt to creditors. The company announced that it recently transferred SEK 3.2 billion (USD 300 million) to them.
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Embracer Group used the money obtained after selling shares of Take-Two Interactive. Take-Two Interactive paid for its purchase of Gearbox Entertainment with these shares.
To recap, Embracer Group reported significant debts in the summer of 2023. As of June 30 that year, it owed creditors a total of SEK 16.75 billion (USD 1.64 billion). The company planned to reduce its debt to SEK 8 billion (USD 760 million) by March 31, 2024, through restructuring, but it did not succeed. In its latest financial report, Embracer Group stated that it still owed creditors SEK 16.4 billion (USD 1.56 billion). However, the company noted that it would be able to pay off a significant portion of the debt after receiving proceeds from the sale of Gearbox Entertainment and Saber Interactive.
Interestingly, in April Embracer Group mentioned plans to shift part of the debt to its subsidiary, Asmodee — a French publisher and distributor of board games. This involved SEK 10.5 billion or EUR 900 million. In an interview with GamesIndustry, they stated that banks view Asmodee favorably, and it has more capacity to repay the debt.
