Oaktree-backed Panrico to undergo restructuring

He will implement a business plan to "guarantee the future" of the firm, Panrico said in a statement.

The firm is thought to have suspended the payment of salaries to its 4,050 employees and is expected to cut around 1,900 jobs, according to reports in the Spanish press.

Apax Partners backed the €900m buyout of Panrico in 2005 in a deal comprising a €650m debt and mezzanine package underwritten by Goldman Sachs, ING, Caja Madrid, Royal Bank of Scotland and La Caixa. In 2010, senior lenders became majority stakeholders in the firm via a restructuring that saw Apax's share reduced almost entirely.

Panrico's debt was slashed from €605m to €350m in a debt-for-equity swap, following six months of negotiations with close to 100 lenders. A €30m credit facility was also made available for the business, and the maturity of the debt was extended to 2015.

The restructuring was prompted by Apax's failure to both repay its loans and attract a suitable offer for Panrico, despite a bid for the company from Permira in May and interest shown by Blackstone Group and PAI partners.

Later that year, Oaktree became the largest shareholder in the firm after buying shares held by Caja Madrid. The US private equity firm acquired 20% of the company's debt, taking a 24% stake in the firm.

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• Topics
• Southern Europe
• Spain
• Oaktree Capital