Hilco UK buys debt of HMV to gain control Hilco UK, the retail restructuring group, has acquired the debt of HMV, effectively giving it control of the company that went into administration last week. People familiar with the situation said Hilco had acquired the debt from the group's lenders, Lloyds and Royal Bank of Scotland. HMV had underlying net debt of £176m as at the end of October. Although Hilco has not acquired HMV, it paves the way for a rescue, as it means Hilco can effectively take control of the retailer. Hilco declined to comment. People close to the situation said the move brought stability to HMV and meant that Hilco could work with administrator Deloitte on the best way to take the business forward. "It takes the panic out of the situation," said one person familiar with the matter. Hilco was already in pole position to acquire HMV, having been appointed on Monday to advise Deloitte on keeping the business running through the administration process. Restructuring experts said Hilco had strong support from the music and film suppliers, given that it owns HMV Canada. HMV plunged into administration last week, threatening 4,000 jobs and about 230 stores, after banks and suppliers refused to provide extra funding. Trevor Moore, chief executive of HMV, said he was "convinced" the high street chain had a future. As well as Hilco, about 50 parties have expressed an interest in HMV to Deloitte, including trade buyers and private equity groups. Game Retail, the entertainment retailer bought out of administration last year by OpCapita, the owner of Comet, is interested in acquiring about 45 HMV stores. Better Capital, the buy-out group run by private equity veteran Jon Moulton; Endless, an investment firm focusing on distressed companies; and Peter Dubens, whose Oakley Capital owns part of Time Out, are also interested in all or part of HMV.