UPDATE 1-Restructuring battle hots up for Wind Hellas

* Junior lenders add incentive to proposal

* Late bail-out approach made by Kellner's PPF

* Successful bid needs backing of lenders

(adds detail, background, PPF approach)

By Alex Chambers and Tom Freke

LONDON, Nov 4 (Reuters) - Subordinated lenders of Wind Hellas have sweetened a part of their restructuring proposal as bidders vie to take control of the debt-laden Greek mobile operator.

The subordinated bondholders are battling with the company's owner, Weather Investments, to win the support of senior lenders who will have a big say over which plan is successful.

Wind Hellas said on Oct. 26 that it would name a preferred bidder this week.

Czech investment group PPF Partners, backed by Czech billionaire Petr Kellner and Italy's Generali (GASI.MI), has also made an approach to rescue the company, three sources close to the situation said on Wednesday.

But PPF's move came after last week's deadline for restructuring proposals and so may be too late to be considered by Wind Hellas, one of the sources said.

Subordinated bondholders of Wind Hellas have offered the company's senior secured noteholders an incentive to back their restructuring proposal, said Michael Hodges of Aladdin Capital Management. The senior secured noteholders are owed 1.2 billion euros ($1.77 billion).

Aladdin Capital is co-ordinating the subordinated bondholders' committee established to protect their 1.1 billion euros in lending to Wind Hellas. The company owes a total of about 3.2 billion euros.

The 400 basis point fee will be paid only to the first 50 percent of accepting bondholders, Hodges said.

The plan sees all bondholders receive an increased margin of 1.5 percent cash and 1 percent as payment-in-kind (PIK) notes, said Frank Sekula, at Jefferies International, financial adviser to the subordinated bondholders' committee.

OPEN BATTLE

Existing owner Weather Investments, a telecom investment company majority-owned by Egyptian tycoon Naguib Sawiris, was the early favourite to retain control of the firm. [ID:nLQ164499]

However, neither Weather nor the subordinated bondholders have the backing of senior secured bondholders, a source close to the situation said.

"The next 24 to 48 hours are critical to how this deal plays out," the source said.

Weather Investments and PPF Partners could not be reached for comment.

Subordinated lenders say they will have the support of senior unsecured bondholders if their offer is selected as the winning bid for the assets of Hellas 2 Telecommunications, Wind Hellas's parent.

A final deal is likely to need the backing of a majority of each class of lender.

The subordinated bondholders agreed to offer at least 117 million euros in new money in their bid for the company on October 27. [ID.nLR512728]

A source familar with the bid said the total size of new money to be injected into Wind Hellas by the subordinated noteholders is between 150 million and 200 million euros. ($1=.6782 Euro) (Editing by Jon Loades-Carter)