UK chemicals company receives lifeline, says FT

The Financial Times reported today the Texas Pacific Group has stepped up to provide €60 million of funding for UK chemicals company, British Vita. Additionally, a €35 million credit facility is to be extended to the company by its senior creditors, which include JP Morgan.

As reported in our February newsletter, JP Morgan is the lead arranger of Vita's loan deal and chair of the senior creditors' steering committee.

The debt-for-equity swap arrangement involves senior creditors writing off 75% of their debt claims in exchange for a 32.5% stake in the company after emerging from restructuring, says the FT. The junior creditors, however, will end up with a 2.5% stake the in the company for writing off €200 million in debt.