NORWAY - Banks taking over IK's KID

Talks with the banks started earlier this year after KID ran into troubles over its debt.

IK acquired a 75% stake in the business in 2005 from its family owners, who retained the balance of the equity. DnB NOR provided a debt package to support the deal, which, according to local press reports, was valued at NOK 900m.

In 2007 the business went through a restructuring process and a new management team was later appointed in February 2008. However, in January this year as a result of worsening market conditions the company was forced to notify the bank that it would not be able to meet its loan obligations.

IK injected NOK 200m in equity this year to strengthen the company's financial position until a former takeover could take place.

Drammen-based Kid Interiør was founded in 1937 and today employs about 1000 people across 109 shops. Last year, the company generated revenues of approximately NOK 860m.

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