Private equity-backed clothing retailer Cortefiel has refinanced €1.3bn of debt by turning to British law to avoid more stringent Spanish regulations.
A total of 80 per cent of the company’s creditors have agreed to the loan extension – greater than the 75 per cent required under British law by below the 100 per cent expected in Spain, where the company is based.
Buyout houses CVC, Permira and PAI picked up 86.6 per cent of Cortefiel in 2005 through a deal that valued the company at €1.44bn.
The firms put in an additional €100m as part of a refinancing from creditors Société Générale, RBS, JP Morgan and ING in 2009.
That refinancing followed restructuring moves, which included closing the company’s 11 Milano stores.
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