Uralita SA agreed to hand ownership of its insulation unit to KKR & Co. and its other creditors in a debt restructuring.
The Spanish building materials company signed a restructuring accord on Wednesday with lenders led by New York-based KKR, the company said in a filing to the Spanish stock-market regulator. Creditors get 90 percent of unit Ursa Insulation Holding BV, in exchange for injecting funds, according to the filing.
KKR bailed out the parent in April 2013 with a loan of 320 million euros ($365 million), in what was the private-equity firm’s biggest European rescue lending deal at the time. Uralita hasn’t met the terms of that restructuring, leading to the new debt deal, according to the company’s statement.
Uralita sales fell 11 percent to 140 million euros last year in eastern Europe and Russia, where the company earns 25 percent of its revenue, according to a Feb. 27 earnings statement. New tax rates in Spain and restructuring costs also contributed to a loss of 118 million euros in the period, according to the statement.
In the restructuring, Uralita will transfer 360 million euros of debt to the unit, along with with 400 million euros of assets, according to the statement. Uralita will keep a 10 percent holding in the insulation business.
The deal has to be approved by shareholders and regulators have to be notified.