25 February 2022, Mumbai:
Creditors of debt-laden fashion conglomerate Shandong Ruyi Technology Group will seek control of Lycra after Ruyi defaulted on a $400 million loan it took from them to buy the fibre maker.
A statement from the creditors on Monday said that Ruyi, known for its ambition to become the LVMH (LVMH.PA) of China, has not been able to repay the Lycra loan since May 2019.
The lenders include Hong Kong-based China Everbright Limited (0165.HK) and Tor Investment Management, along with Seoul-based private equity firm Lindeman Partners and its affiliate Lindeman Asia.
_large.jpg)
ALSO READ: The LYCRA Company has launched a fiber composed entirely of textile waste for use in insulation applications
Their steps to assume full equity control of Lycra include the appointment of receivers for the assets of Lycra's parent. Ruyi and Lycra did not respond immediately to requests for comment on Tuesday.
Ruyi bought control of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the deal.
Reuters reported in 2020 that some of Ruyi's creditors had hired a restructuring specialist to sound out potential buyers for Lycra after weakening financial performance of the manufacturer of the eponymous stretchy material fears of a loan default.
Follow us on Linkedin & Youtube.
Subscribe to our daily e-newsletter.
*Figures mentioned in the above article have been sourced from Reuters article.
