Noteholder group response to pre-pack sale of Farfetch to Coupang
The 2027 Ad Hoc Group (the Group), holding over 50% of Farfetch's 3.75% Convertible Senior Notes due 2027 and formed to explore options over the proposed acquisition of Farfetch by Coupang, notes the pre-pack sale of the Farfetch business to Coupang.
Despite Farfetch indicating that it would run a sales process through to end April 2024, the sale has been rushed through, seemingly in the face of investor discontent.
The Group believes the expedited sale of Farfetch to Coupang is yet another example of serious failings at Farfetch, including a lack of transparency and corporate governance at Farfetch. The unjustified speed of the sale process and bridge loan terms have precluded any proper marketing of Farfetch's assets to other interested parties and fail to maximise asset value for stakeholders. The rapid and unexplained deterioration in Farfetch's financial position, the significantly below market value offer for Farfetch by Coupang and the terms of the Transaction Support Agreement ?poison pill', which has effectively prevented any other interested parties from entering the bidding, all raise significant concerns regarding the process. The Group is evaluating all options for recovering value, including litigation.
A spokesperson for the Ad Hoc Group commented "Farfetch has taken a consensual outcome off the table which would have been in the interests of its investors, shareholders and employees. This is another example of why we are so concerned about Farfetch's actions. We maintain our position and will evaluate all possible litigation steps."
Notes to Editors:
About the 2027 Ad Hoc Group
The 2027 Ad Hoc Group is a group of funds managed by institutional investors managing a combined AUM in excess of US$1 trillion. The Ad Hoc Group of creditors holds over 50% of Farfetch's 3.75% Convertible Senior Notes due 2027.
The Group has appointed Pallas Partners as legal counsel and Ducera Partners as financial advisors.
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