The two firms will no go ahead with their plan to increase the company’s borrowings to pay themselves the dividend after overcoming opposition from its lenders, Reuters has learned from bankers.
The plan is to conduct a dividend recapitalisation by securing a €145m loan and taking €40m out of Mivisa’s cash researves to pay the dividend.
The lenders were initially opposed to increasing Mivisa’s debt and taking money out of the business, but they have failed to secure the support of a third of its shareholders.
However, they have managed to force Blackstone and N+1 to maintain ratings on Mivisa and drop their plans to move the company’s headquarters to Murcia from Barcelona, the bankers said.
The deal is expected to be finalised by 5PM GMT – which is the deadline for the lenders to submit their approvals.
“However, if you look a bit more closely, the company has performed well and produces a lot of cash.
“From thinking it was ludicrous to do this deal in the current market, the company actually has a good business case to pull it off.”
Copyright © 2013 AltAssets