Debt-laden Oerlikon draws up refinancing deal- FT

LONDON, March 22 (BestGrowthStock) – Debt-laden Swiss engineering
group Oerlikon (OERL.VX: ) has drawn up rough plans with its major
lenders to restructure its finances, the Financial Times
reported on Monday.

The paper said lenders had agreed proposals to cancel some
of the group’s debt, convert parts of its bank debt into an
equity stake and allow a large capital increase from main
shareholder Renova, which holds a 45 percent controlling stake.

Citing people close to the matter, the FT said the change to
the company’s long-term financing is likely to exceed the 800
million Swiss francs ($757.6 million) floated last year as talks
began, but the deal is yet to be approved by smaller lenders.

Oerlikon, which makes a range of products from coatings used
in Formula One racing cars to machines used to make solar cells,
has been hit hard by the sharpest economic downturn in decades.

The group has been striving to reach a deal with its lenders
on how to repay debt it took on to buy car parts and machinery
maker Saurer in 2006.

It is due to pay the first, 600 million Swiss francs ($553
million) tranche, by the end of the first quarter this year.
The group, which appointed restructuring expert Michael
Buscher as chief executive last month, is expected to provide
further details on the agreement when it reports its 2009 annual
results on April 1. [ID:nLDE61903S]


($1=1.056 Swiss Franc)
(Reporting by Caroline Copley; Editing by Simon Jessop)

Debt-laden Oerlikon draws up refinancing deal- FT