(Reuters) – U.S. fiber maker Lycra has attained new possession, with creditors of its previous guardian firm Shandong Ruyi Know-how Group (Ruyi) using full equity regulate soon after the Chinese manner conglomerate defaulted on a $400 million bank loan.
The new entrepreneurs consist of Hong Kong-based mostly China Everbright Ltd, Tor Financial investment Administration and Seoul-primarily based private fairness agency Lindeman Companions and its affiliate Lindeman Asia.
“We have applied quickly the proactive measures expected to defend and improve the foreseeable future of The LYCRA Enterprise and to insulate the Business thoroughly from its previous shareholder’s financial distress,” the new house owners mentioned in a assertion.
Lycra CEO Julien Born reported in a separate statement: “the new possession composition supplies the required backing from knowledgeable specialists who share our lengthy-phrase vision.”
Associates for Ruyi did not right away reply to a request for comment.
Ruyi purchased control of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the deal.
The Chinese style business set out to produce a world-wide luxury outfits empire, embarking on a buying spree that bundled London-based mostly suitmaker Aquascutum, Paris-based mostly trend dwelling Cerruti 1881 and style group SMCP.
But the conglomerate has struggled below the body weight of its personal debt and its monetary problems worsened with the COVID-19 pandemic.
(Reporting by Akriti Sharma in Bengaluru Enhancing by Edwina Gibbs)
Copyright 2022 Thomson Reuters.