Vestar loses money as Nybron restructures

Nybron Flooring International, a struggling Swiss maker of wooden floors, has become one of the first private equity-backed businesses to restructure as global markets stutter

The US buyout firm Vestar Capital Partners, which bought Nybron Flooring International in 2005 in a secondary buyout from Nordic Capital, has lost its investment under the terms of the debt restructuring.

Holders of about €300 million ($433 million) of senior debt will exchange around €115 million of debt for 90 percent of the preferred shares of the restructured company, Nybron, a Swiss floor maker, said on Tuesday.

The move saves the company from insolvency.

Nybron, which breached bank covenants earlier this year, had suffered from increased competition from China.

The preferred shares have been valued at €85 million, the company said. Senior lenders will retain €185 million of debt.

The second lien and mezzanine lenders, holders of about €75 million of debt, will each get 5 percent of the preferred shares, Nybron said. AXA and European Capital were both mezzanine lenders to the business.

Blackstone Group, the US-based firm, and law firm Allen & Overy advised senior debt holders, while Houlihan Lokey Howard & Zukin and Bingham McCutchen represented mezzanine holders.