Permira agrees on debt restructure for Borsodchem

Under the plan, Borsodchem majority shareholders Permira and Vienna Capital Partners would underwrite a €140m injection of new funds, alongside Wanhua. Although nothing is set in stone, Permira would keep majority control of the chemicals firm, with Wanhua having a minority stake.

The parties had already agreed to a restructuring plan in October last year, but had to renegotiate after a €100m government bail-out from Hungarian Development Bank was repealed.

Under the proposal the company’s mezzanine debt, a majority of which is held by Wanhua, would reportedly be converted into equity, while senior creditors would be unaffected.

This is not the only portfolio company of Permira’s to be suffering from excessive debt -  the firm was recently forced to renegotiate Italian fashion label Valentino’s €2.5bn debt pile.

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