Lenders to Monier Group, the French roofing business bought out by private equity house PAI Partners, have agreed to a restructuring proposal that would see a group of debt investors seize control of the business, according to a report on newswire Reuters.
The debt-for-equity swap deal was proposed by a working group of lenders, fronted by Apollo Global
Monier: new owners
Management, TowerBrook Capital Partners and York Capital Management.
Before agreeing the latest proposal, Monier’s lenders had rejected two PAI proposals to inject more equity in exchange for a debt “haircut”, the latest of which would have seen the buyout house inject a further €135 million and retain just 50 percent of the equity.
PAI Partners acquired Monier – which manufactures roofing materials – for €1.6 billion in 2007. The business has been hit hard by the decline in residential construction and in April this year Jürgen Koch, Monier’s chief financial officer, said that high liquidity was a top priority for the business in 2009 in order to secure the operating business for the “foreseeable future”.
PAI is being advised by Goldman Sachs, while the lenders’ steering committee – consisting of BNP Paribas, GE Commercial Finance, Harbourmaster, RBS and Societe Generale – is being advised by Houlihan Lokey.
The source told Reuters the restructuring deal is set to be signed on Monday but lenders have already approved a waiver on an interest payment due at the end of the month.