Investcorp’s Icopal Gets U.K. Court Backing to Extend Loans
Icopal A/S, a Danish building product manufacturer owned by Investcorp SA, got permission from a London judge to extend parts of its 700 million euros ($927 million) of loans.
The company can push back the maturity of its term loan B, term loan C and two credit lines after receiving sufficient support from lenders, Judge Robert Hildyard said in a ruling today. The U.K. court’s “scheme of arrangement” process required a positive vote from at least 75 percent of creditors and agreement that the case was being heard in the correct jurisdiction.
Icopal sought to the extend the loan maturities to 2017, offering to increase the interest margin by 150 basis points, or 1.5 percent, people with knowledge of the situation said earlier this year. The Herlev, Denmark-based firm joins other European companies, including Cortefiel SA and Monier Group Sarl, to seek U.K. court approval for a debt-extension request.
Lender Svenska Handelsbanken AB hadn’t supported the extension proposal before the hearing and came to a separate agreement with the company, the judge was told by the company’s attorney.
Investcorp acquired Icopal for 850 million euros in a 2007 buyout, according to data compiled by Bloomberg. ING Groep NV, Lehman Brothers Holdings Inc. and Mizuho Bank Ltd. arranged the debt backing the transaction.
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