Spain's DIA To Pursue Debt Refinancing Deal After It Misses Deadline
Spanish retailer DIA said on Monday its main shareholder will seek a deal on how to restructure the discount supermarket chain's towering debt after missing a Saturday deadline.
The company's biggest shareholder, investment fund LetterOne, is negotiating with a group of 17 lenders, including seven investment funds, the details of a €380-million ($426.63 million) refinancing agreement, according to a source with knowledge of the deal.
The fresh money is required by the fund owned by Russian tycoon Mikhail Fridman, for DIA to implement a €500-million share-capital increase approved by the shareholders' meeting on 20 March.
In Spain, DIA is competing with home-grown and foreign rivals that have ploughed more money into their stores, leaving it on the brink of declaring insolvency.