Centerbridge Partners LP offered to inject 50 million euros ($68 million) into Apcoa Parking Holdings GmbH to help the German car park operator finance a potential cash outflow, according to two people with direct knowledge of the negotiations.
Lenders have been asked to approve a proposal to provide 30 million euros to the company in November and 20 million euros in January, said the people, who asked not to be identified because the talks are private. Centerbridge’s funding would rank before other debt claims and the offer requires support from all existing lenders.
Apcoa, whose car parks include those at Gatwick and Heathrow airports, is seeking to renegotiate about 640 million euros of loans maturing next year. It told creditors of a “possible temporary cash outflow of about 20 million euros,” Tilman Kube, a spokesman for Stuttgart-based Apcoa, said earlier this month. He declined to comment on the terms of Centerbridge’s financing proposal.
The offer also includes a request for lenders to agree to Apcoa suspending interest payments and obtaining a standstill pact, under which lenders agree not to demand repayment for a loan for a certain period, the people said.
An official at New York-based Centerbridge, who asked not to be named citing company policy, declined to comment on the proposal. Sandra Cadiou, a spokeswoman for Apcoa’s private-equity owner Eurazeo SA, also declined to comment.
Philippe Audouin, Eurazeo’s chief financial officer, said talks were taking place with holders of Apcoa’s loans about a debt restructuring, according to a Nov. 7 call with investors.
Eurazeo paid 885 million euros in 2007 for a majority stake in Apcoa backed by 660 million euros of loans, according to data compiled by Bloomberg. It renegotiated the terms of Apcoa’s loan pact in December 2009, according to an annual report from the Paris-based private-equity company.
Centerbridge has bought pieces of Apcoa’s debt from other lenders and now holds at least 200 million euros of the loans, people said earlier this month.