Oaktree, Highland Said to Object to Mauser Profit Calculations

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Oaktree Capital Management LLC and Highland Capital Management LP demanded a German packaging company owned by Dubai’s ruler stop using debt buybacks to boost profit, two people familiar with the matter said.

The funds and two other investors that own more than 66 percent of the company’s 700 million euros ($943 million) of senior debt also demanded Mauser Group restate past financial figures to remove gains that helped it meet the terms of its debt agreements, said the people, who didn’t want to be identified because the talks are private. Mauser is owned by Dubai International Capital LLC.

Lenders are insisting that companies meet debt covenants rather than grant waivers like they did in the past as the economy recovers. Creditors last year forgave 7 billion euros of senior loans as part of restructurings to keep speculative-grade borrowers afloat, according to Fitch Ratings.