Talks poised to take caravan parks out of private equity firm's control
Talks to restructure Park Resorts, the ailing private equity-backed caravan group, are believed to have reached a critical juncture, sources close to the situation have said.
PricewaterhouseCoopers, which was drafted in by a consortium of banks led by Lloyds Banking group, is thought to be finalising details of a possible debt for equity swap that could see GI Partners lose control of the firm. Chris Smith, a director at Lloyds from the firm's inherited HBOS integrated finance division, is leading the banks in their discussion with GI.
GI Partners bought Park Resorts for £440m in 2007 in a highly leverage deal that left the company with around £350m of debt. The private equity company was forced to inject £15m of equity into the business last year after a strategic review.
It replaced the company's management in December bringing back David Vaughan who led a team that founded Park Resorts in 2001 in a buyout from Bourne Leisure.
Spokesmen for both GI Partners and PWC declined to comment.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies