FRANKFURT, July 18 (Reuters) - Hedge funds holding bonds in insolvent German DIY retailer Praktiker want to convert a 250 million euro ($327 million) bond into Praktiker shares, their representative said on Thursday.
That means the bondholders are effectively targeting a takeover of the group.
“There’s a group of four or five investors coming together,” Ingo Scholz, the representative of the bond holders, told Reuters on Thursday. “They are prepared to help the group out of its crisis.”
Praktiker filed for insolvency last week after talks with creditors failed, triggering fears of heavy job losses. The insolvency administrators are continuing to keep the business running whilst they review options for a restructuring of the chain, a household name in Germany. ($1 = 0.7637 euros) (Reporting by Alexander Huebner; Writing by Victoria Bryan)