A number of lenders to struggling French retailer Vivarte have submitted proposals to restructure the company's 2.8 billion euro ($3.85 billion) debt, banking sources said on Monday, Reuters reported. The plan would lead to an injection of fresh cash and wipe out a portion of existing debt in return for equity, the sources said. Vivarte entered into a four-month conciliation process with its lenders in March to negotiate a way forward after the borrower failed to get an agreement from a majority of its lenders to suspend loan covenant tests. A number of lenders submitted letters of intent on how to restructure Vivarte's debt last month and more formal offers were submitted last Friday, the banking sources said. Investment funds Oaktree, Canyon, Goldentree and ICG, which own around 26 percent of Vivarte's loans between them, have teamed up to submit a proposal and want other lenders to join them in underwriting a new deal. Other lenders, including Alcentra, have also submitted offers, they added. Other parties to have expressed interest in the company include KKR, as well as Angelo Gordon, the sources said. Vivarte is looking to reduce debt to a maximum of 1 billion euros. Proposals centre around the injection of 500 million euros of new cash either in the form of super senior loans or convertible bonds and writing off up to 2.3 billion euros of existing first lien and second lien debt, in return for equity, the banking sources said. Read more.