US-based distressed investor Redwood Capital took control of Dutch lingerie maker Hunkemoller last week following an event of default, according to 9fin sources. The move opens up the possibility of a cross-border legal battle with other noteholders it primed and uptiered last year.

Redwood’s tie-up with Hunkemoller goes back at least a year. The firm amassed a €186m stake in the Dutch lingerie brand’s €272.5m senior secured notes and last year leveraged its position to prime and uptier holders of the remaining 32% of the notes, which includes Cheyne Capital, Contrarian, and Man GLG.

As part of that transaction, Redwood lent Hunkemoller a €50m super senior secured term loan due December 2026 (paying EURIBOR+500bps) and exchanged its €186m of SSNs for notes ranking ahead of the existing notes.