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02/11/2009

Terreal.(Restructuring news)


Lenders have rejected the suggestion that a plan to restructure 912.5m [pounds sterling] of Terreal debt amounts to little more than a covenant reset, citing the increased control and potential upside gained by lenders if they agree to a restructuring proposal currently on the table.

Lenders in the all-senior deal have until October 14 to decide whether to back the proposal, which was made by incumbent sponsor LBO France and is backed by management.

Under the proposal, LBO France would make a 70m [pounds sterling] capital injection to retain its majority equity stake, with management gaining from a revised incentive package.

All debt would be kept whole but …
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