KKR affiliate investors seek repayment advice -WSJ

NEW YORK, Aug 23 (Reuters) - Investors in $5 billion of commercial paper, or short-term debt, from KKR Financial Holdings LLC (KFN.N) have hired a bankruptcy lawyer to advise them on a request to delay repayment, the Wall Street Journal reported.

The roughly 15 holders of the debt, from the affiliate of buyout firm Kohlberg Kravis Roberts & Co [KKR.UL], have hired D. Ross Martin, a bankruptcy and business-restructuring specialist at law firm Ropes & Gray LLP, the Journal reported.

The debtholders agreed on Monday to a seven-day standstill pending talks on revised payment terms, the Journal reported, citing people familiar with the matter.

The investors include General Electric Co (GE.N) and the money-management arms of U.S. Bancorp (USB.N) and Legg Mason Inc (LM.N), the Journal said.

KKR Financial recently sold $5.1 billion of residential mortgage assets and interest rate swaps, which will result in a $40 million loss. It now owns about $5.8 billion in mortgage loans, which it finances with note facilities of about $200 million. (Reporting by Anupreeta Das)