The Swedish holding company Embracer Group has reduced its debt to creditors. The company announced that it recently transferred 3.2 billion SEK (300 million USD) to them.
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Embracer Group used the money received after selling shares of Take-Two Interactive. Take-Two Interactive used these shares to pay for the purchase of Gearbox Entertainment.
Recall that Embracer Group reported significant debts in the summer of 2023. As of June 30 of that year, it owed creditors a total of 16.75 billion SEK (1.64 billion USD). The company planned to reduce the debt to at least 8 billion SEK (760 million USD) by March 31, 2024, through restructuring, but it failed to do so. In the latest financial report, Embracer Group stated it still owed creditors 16.4 billion SEK (1.56 billion USD). However, the company noted that it will be able to pay off a substantial part of the debt after receiving funds from the sale of Gearbox Entertainment and Saber Interactive.
Interestingly, in April Embracer Group discussed plans to shift part of the debt onto its subsidiary Asmodee — a French publisher and distributor of board games. This involved 10.5 billion SEK or 900 million EUR. In an interview with GamesIndustry, they mentioned that banks have a positive outlook on Asmodee, and it has greater capacity to repay the debt.