Friday 10 December 2010

Alliance Medical's Senior Lenders to Take Control Under Restructuring Plan - Bloomberg

Alliance Medical Ltd., the U.K. maker of medical-imaging equipment including CT scanners and X- ray machines, said lenders will take control of the company as part of a 570 million-pound ($902 million) debt restructuring.

Alliance Medical, which Dubai International Capital LLC bought in 2007 in a 600 million-pound leveraged buyout, has been in talks with investors for the past year amid declining sales following government healthcare cuts. Its obligations will be reduced to 250 million pounds after writing down senior debt and 140 million pounds of mezzanine loans as well as a debt-for- equity swap, the company said in an e-mailed statement today.

Senior lenders including Lloyds Banking Group Plc, Commerzbank AG and M&G Investments, will take a majority stake in the company, while holders of mezzanine debt and Dubai International will take a minority share, according to the statement. Senior investors, all of which agreed to the restructuring, will also inject 60 million pounds of new money into Alliance Medical, the company said.

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