Updated
Updated · Bloomberg · Jun 8
AIP Leads $1 Billion ICP Debt-for-Equity Talks as Audax Withholds New Money
Updated
Updated · Bloomberg · Jun 8

AIP Leads $1 Billion ICP Debt-for-Equity Talks as Audax Withholds New Money

1 articles · Updated · Bloomberg · Jun 8

Summary

  • American Industrial Partners is leading creditors in talks to swap existing debt for equity in Innovative Chemical Products Group, targeting a restructuring of more than $1 billion due next year.
  • The negotiations are aimed at tackling ICP’s looming maturity wall at the coatings and adhesives maker, whose capital structure has come under pressure ahead of that deadline.
  • Audax Management-backed ICP has already been in restructuring discussions with lenders, and Audax has signaled it will not inject additional funds to support the company.
  • That stance leaves a debt-for-equity exchange as a central path for creditors to stabilize ICP while shifting ownership away from the current sponsor.

Insights

In a slumping market, can new creditor-owners succeed in turning around ICP where its private equity backers failed?
As private equity giant Audax abandons its investment, are creditor takeovers now the inevitable fate for over-leveraged companies?