Private Equity Companies Debt
Debt-Heavy Portfolio Companies Taken Over By Lenders
Recent examples include CPI Group (Europe's biggest book printer), Linpac (maker of the plastic packaging for McDonald's), and Navimo (producer of yachting accessories). The private equity buyers--such as CVC Capital Partners and Montagu--have lost control of these companies in the recession and there are fears that other debt-laden companies may fail as well.
What do the maker of McDonald’s fast food cartons, Europe’s biggest book printer, and a French yachting accessories group have in common?
They are all companies bought by UK-based private equity groups before the credit crunch, which have run into trouble because of excessive debts and been taken over by their lenders in the past few weeks.
The next wave could include Hit Entertainment, the Apax Partners-owned media group behind Bob the Builder and Thomas the Tank Engine; Gala Coral, the betting and bingo group owned by Cinven, Candover and Permira; and Foxtons, the London estate agents owned by BC Partners.
The growing list of credit crunch victims illustrates how hard private equity groups are having to fight to protect investments.
The latest example is Linpac, the Birmingham-based maker of plastic packaging for McDonald’s and Tesco, which has been taken over by lenders led by Lloyds Banking Group in a restructuring that halves its debts to about £320m ($526m). Source
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Tags: Private equity, private equity firms, private equity companies, company lenders, buyout financing, restructuring, private equity assets, buyouts
Link to This Resource: Private Equity Companies Debt
http://privateequityblogger.com/2009/11/private-equity-companies-debt.html