RLPC-Biffa Lenders Seek Salvation Strategy
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Lenders to UK waste manager Biffa are bracing themselves for a debt-for-equity restructuring if it is unable to sell certain divisions to reduce its 1-billion pound ($1.57 billion) debt, Reuters reported. Biffa is expected to breach loan covenants this year due to reduced waste volume on the back of lower consumption. . Its earnings will also be hit by a new UK landfill tax. Senior lenders to Biffa, which is owned by Montagu Private Equity and Global Infrastructure Partners (GIP), have now formed a steering committee comprising Dexia, GE Capital, GSO Capital Partners, M&G and HSBC, banking sources said on Tuesday. This group is in the process of appointing restructuring advisers, the sources added. Lenders of Biffa's mezzanine loans are considering swapping their claims for equity in the business because their holdings have become almost worthless, the sources said. Read more.