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CVC Cedes Control of Nine in A$2.3 Billion Debt-Equity Swap

CVC Capital Partners Ltd. relinquished Australia’s second-largest television network Nine Entertainment Co. to creditors, according to two people with knowledge of the matter, in the largest failure of a leveraged buyout in the country in at least 12 years.

About 60 percent of an initial A$5.75 billion ($5.93 billion) debt and equity investment will be wiped out, with the restructured company worth A$2.3 billion, the people said, asking not to be identified as the plan is yet to be signed. U.S. hedge funds Apollo Global Management LLC and Oaktree Capital Group LLC will take control of the broadcaster and funds represented by Goldman Sachs Group Inc. will receive a 4.5 percent stake, they said.