The distressed investment arm of Oaktree Capital has provided embattled Iberian doughnut maker Panrico with a debt restructuring plan, according to Reuters.
The deal, which follows a year after the company’s first debt for equity swap, will see Panrico’s loans being written down from €350m to €60m while it attempts to boost revenues hit by the recession.
A separate junior ranking loan of €115m will be disregarded completely, and Oaktree has also offered to invest a further €105m to keep the company running.
Panrico’s equity, owned by lenders, will also be redistributed, with 50 per cent to going to Oaktree and 30 per cent to lenders, which took control in September 2010 when previous owner Apax Partners lost control of the company.
Panrico, founded in 1961, focuses on the value added branded pastries and sliced bread categories, where it operates under pre-eminent brands such as ‘Donuts’, ‘Panrico’, ‘Bollycao’ and ‘Donettes’.
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