LONDON (Reuters) – Lenders to UK chemicals group British Vita have agreed a debt for equity deal that will see its current owner TPG Capital and lenders inject extra cash into the company, a person close to the company said.
More than 75 percent of creditors approved the deal at a meeting on Friday, the source said on Monday, enough for it to be put before a judge for approval.
A court hearing is scheduled for Wednesday.
British Vita declined to comment.
Under the agreement TPG and a number of lenders will inject 95 million euros ($123 million) into the company in exchange for a cut in its debt from 663 million euros to around 100 million euros, the source said. [ID:nLD314921]
British Vita, bought in 2005 for 668 million pounds ($976 million), specialises in plastic sheeting and foam products for a range of firms, including those in the auto and construction sectors.
After the restructuring deal, senior lenders are due to end up with a 37.5 percent stake in the company, the source said. TPG will end up with a 33.4 percent holding in exchange for contributing 40 million pounds of new money. ($1=.7706 euros) ($1=.6847 pounds)
(Editing by Greg Mahlich)