Cognetas-backed Novus undergoes restructuring

Cognetas-backed Novus Leisure, owner of West End bars Tiger Tiger, Sugar Reef and the Zoo Bar, has undergone a restructuring that will see its private equity owner's stake diluted to minority status.

The deal will result in a reduction of Novus' debt, in exchange for the company's lenders, Barclays Ventures and RBS, becoming majority shareholders.

Cognetas acquired Novus in 2005 for about £115m, later investing £20m in 2007. It was reported that the deal left the company with a heap of debt, leaving it close to a breach of its banking covenants.

It is thought that Novus has been troubled by the consumer downturn, as drinkers have been staying in more in an effort to save money. In April, Novus reportedly wrote to its landlords asking for rent cuts.

Latham & Watkins were the company's advisers in the process.

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