June 29 (Reuters) – U.S. fiber maker Lycra has gained new ownership, with creditors of its previous mother or father firm Shandong Ruyi Technologies Team (Ruyi) 002193.SZ taking total fairness regulate just after the Chinese vogue conglomerate defaulted on a $400 million bank loan.
The new owners consist of Hong Kong-dependent China Everbright Ltd 0165.HK, Tor Financial commitment Management and Seoul-centered private equity agency Lindeman Associates and its affiliate Lindeman Asia 277070.KQ.
“We have carried out quickly the proactive measures essential to guard and fortify the foreseeable future of The LYCRA Company and to insulate the Corporation absolutely from its previous shareholder’s money distress,” the new homeowners explained in a assertion.
Lycra CEO Julien Born explained in a independent assertion: “the new ownership composition provides the essential backing from seasoned gurus who share our very long-term vision.”
Reps for Ruyi did not instantly react to a request for comment.
Ruyi acquired command of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the deal.
The Chinese fashion business set out to develop a world-wide luxury apparel empire, embarking on a getting spree that integrated London-based mostly suitmaker Aquascutum, Paris-based mostly fashion dwelling Cerruti 1881 and vogue team SMCP.
But the conglomerate has struggled underneath the pounds of its personal debt and its fiscal problems worsened with the COVID-19 pandemic.
(Reporting by Akriti Sharma in Bengaluru Editing by Edwina Gibbs)
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