| LONDON, March 14
LONDON, March 14 Dutch TV production company
Endemol faces being taken over by its creditors after US hedge
fund Apollo acquired a further chunk of the company's 2 billion
euro ($2.79 billion) debt pile earlier this month, banking and
restructuring sources said.
Apollo acquired more than 600 million euros of first lien
Endemol debt from RBS, Centerbridge, Lehman and Goldman Sachs in
the European secondary market, according to one restructuring
This increases the hedge fund's stake in the business from
under one third to more than two thirds bankers said, allowing
the hedge fund to potentially take control of the company
through a debt for equity swap.
Apollo declined to comment. Endemol could not be immediately
reached for comment.
Endemol has been struggling to find a solution to its large
debt pile for the last two years after creditors failed to reach
an agreement over a potential restructuring of the debt.
In March 2012, Apollo bought out Endemol's biggest lender at
the time, Barclays, in a bid to push through a debt
restructuring and pave the way for a potential sale of the
Apollo paid 58 cents in the dollar for the debt after the UK
bank refused to agree a debt for equity swap. Since then talks
have reached stalemate.
At the time, Apollo proposed a debt for equity swap which
would cut Endemol's debt to 500 million euros, split between a
400 million euro senior loan facility and a 100 million euro
It is expected that Apollo will table a very similar plan
Endemol's debt is currently made up of around 1.4 billion
euros of senior debt, 350 million euros of second lien and 250
million euros of mezzanine.
Goldman Sachs, Italian media group Mediaset and investment
firm Cyrte acquired Endemol in 2007 for 2.6 billion euros.
($1 = 0.7180 Euros)
(Editing by Christopher Mangham)