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Charterhouse could walk away from debt-laden Vivarte in €2.8bn loan restructuring

15 May 2014

clothes-scarvesCharterhouse-backed French retailer Vivarte has reportedly been approached by five groups of lenders keen to restructure the €2.8bn debt of the struggling company.

The private equity house bought Vivarte in 2007 backed by €3.43bn of leveraged loans, but has struggled manage that debt pile and is now prepared to walk away from its investment according to Reuters.

It said Alcentra, Hayfin and Credit Suisse Asset Management had formed a group to submit a restructuring proposal, as had Angelo Gordon & Co with Avenue Capital Group and Sankaty Advisors.

GoldenTree, ICG , Oaktree, Canyon, Babson and Oak Hill grouped together to submit a proposal, while Elliot Advisor and Park Square did so on an individual basis.

Reuters said Vivarte was looking to reduce debt to a maximum of €1bn, with proposals centring around the injection of €500m of new cash either in the form of super senior loans or convertible bonds and writing off up to €2.3bn euros of existing first lien and second lien debt in return for equity.

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