KKR did not wish to comment.

On the consent deadline last Thursday (28 July) the group was still waiting on two lenders to sign up to the deal, as reported.

“The hold out position had a resolution so that’s got them over the line,” one lender told 9fin.

The adhoc committee of lenders, which holds around 60% of the TLB and RCF, consists of Barings, M&G, Invesco, Skandinaviska Enskilda Banken (SEB), DNB and Nordea, as reported.

The group is proposing converting around €560m of outstanding TLB and RCF debt into a new senior €300m facility maturing in February 2026, as reported. The facility will be issued at the OpCo level and will pay 5% cash over Euribor and 1.25% PIK. The remainder of the debt at around €260m, including interest accrued and unpaid until the restructuring effective date, will be converted into a HoldCo PIK paying 12%. This facility will mature 12-months after the maturity of the senior opco facility.

Sponsor KKR is looking to gradually sell the various parts of Hilding Anders and this debt extension will give it the time to do this, as reported. As part of the proposal, KKR will receive contingent value rights for the proceeds of the eventual sale of the business’ various entities in Europe, Russia and Asia.

A condition of the proposal, is that the group will appoint a financial advisor on 1 January 2024 to commence the sale of its European business by the middle of 2024, the first source close said. A timeline for the sale of the Russian business was not provided as it’s hard to predict what will happen with the war in Ukraine, they explained.

Russian subsidiary Askona will be taken out of the restricted group. Covenants are also tightened up in the proposal, the same source said.

The company is advised by PJT Partners (financial) and Kirkland & Ellis (legal). The lenders are being advised by Lazard and Latham & Watkins.