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UK - Carlyle to inject £25m into IMO

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According to reports, Carlyle Group is negotiating a restructuring with creditors of portfolio company IMO Carwash designed to allow it to maintain control of the business, in a deal that would see it fork out up to ТЃ25m in return for a significant write-off of debt.

Carlyle is thought to be asking senior creditors to reduce their claims by a third and offering junior creditors a debt for equity swap.

This would not be the first time the financial backer has injected cash into the business, after a £25m PIK-loan in Spring 2008 that was designed to give the company more headroom on its covenants.

The original IMO was founded in 1965 and rapidly developed a chain of automated car washes extending to Switzerland, Holland, Germany and the UK. It currently operates some 900 sites across 14 countries.

The company was acquired by Carlyle in 2006 from JP Morgan Partners (JPMP) in a deal valued at £450m. The business had originally been acquired by JPMP from Bridgepoint in 2003 for £ 350m.

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