(Reuters) – U.S. fiber maker Lycra has obtained new possession, with collectors of its previous dad or mum firm Shandong Ruyi Technology Team (Ruyi) taking full equity regulate right after the Chinese manner conglomerate defaulted on a $400 million loan.
The new house owners consist of Hong Kong-based mostly China Everbright Ltd, Tor Expenditure Management and Seoul-based mostly personal equity company Lindeman Associates and its affiliate Lindeman Asia.
“We have implemented quickly the proactive actions needed to defend and improve the long term of The LYCRA Firm and to insulate the Business completely from its former shareholder’s economic distress,” the new entrepreneurs said in a assertion.
Lycra CEO Julien Born explained in a different statement: “the new ownership construction delivers the important backing from skilled gurus who share our extended-term vision.”
Reps for Ruyi did not immediately react to a request for remark.
Ruyi purchased control of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the deal.
The Chinese vogue agency established out to make a global luxurious clothes empire, embarking on a acquiring spree that integrated London-dependent suitmaker Aquascutum, Paris-primarily based fashion household Cerruti 1881 and style team SMCP.
But the conglomerate has struggled below the body weight of its credit card debt and its fiscal problems worsened with the COVID-19 pandemic.
(Reporting by Akriti Sharma in Bengaluru Modifying by Edwina Gibbs)
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