Gherkin co-owner files for form of bankruptcy

The co-owners of the Gherkin announced yesterday they have filed for a form of bankruptcy, after restructuring negotiations failed.

German firm IVG Immobilien bought the Gherkin for £600m five years ago but the iconic development ran into trouble with the onset of the recession.

IVG Immobilien has been in talks with creditors hoping to arrange a debt-for-equity swap and reduce its £1.85bn debt pile but the deal has now collapsed after what has been described as a round of “intense negotiations.”

The matter is being dealt with in Germany, where the company is seeking a so-called protective shield, the German equivalent of US chapter 11 bankruptcy. The protection will allow executives to stay in charge for three more months, in the hope they will be able to negotiate a different restructuring plan.