3i, who owned controlling interest in the Italian lawnmower maker, Global Garden Products (GGP), lost control after lenders seized their equity in GGP.
3i invested 260m (181m) of equity when it bought the maker of Mountfield, Stiga, Alpina and Castelgarden brands of lawnmowers, chainsaws and other powered garden tools for 730m in October 2007.
Europe’s largest lawnmower manufacturer said on Monday that it had reached a deal with lenders – including Credit Agricole, Halcyon, Intesa Sanpaolo, Lloyds, Nordea, SEB, BNP Paribas and Royal Bank of Scotland – for them to take it over and wipe out 3i’s stake.
Lenders agreed to nearly halve Global Garden Products’ debt, from 487.7m to 257.1m. Senior lenders wrote off 40 per cent of their debt and second lien debt holders wrote off 43m of claims. Together they will own 85 per cent.
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