A group of lenders to Bartec GmbH hired Deloitte LLP to advise them as they negotiate with the private equity owner of the oil and gas equipment maker, according to two people familiar with the matter.
Charterhouse Capital Partners is trying to persuade the lenders to amend rules governing loans to Bartec. All lenders were invited to vote to choose financial advisers and Deloitte was appointed on Tuesday, said the people, who asked not to be identified because they’re not authorized to speak about it. The group includes Ares Management LP, Idinvest Partners and Partners Group Holding AG, which are working with law firm Kirkland & Ellis and pushed back against a proposal from the private equity company last month, the people said.
Charterhouse revised the terms of the plan on Tuesday, offering a bigger cash injection and higher interest margins on its loans. Bad Mergentheim, Germany-based Bartec wants a waiver from debt requirements because the collapse in crude prices has sapped demand for its safety equipment and hurt earnings.
Under the revised proposal, Charterhouse pledged as much as 30 million euros ($34 million) of new equity, up from 20 million euros previously and also offered 10 million euros toward a new 30 million-euro credit facility, people familiar with the matter said on Tuesday. Lenders will get an additional interest margin of 225 basis points, payable in more debt, instead of 200 basis points, and a one-time cash payment equal to 50 basis points, they said.
Representatives for Deloitte, Charterhouse, Kirkland & Ellis, Idinvest and Partners Group declined to comment on the discussions. Officials at Bartec and Ares weren’t immediately available to comment.