Fashion group Shandong Ruyi’s creditors take full control of Lycra

The firm symbol of China Everbright Confined are shown at a information meeting on the firm’s yearly benefits in Hong Kong, China March 23, 2016. REUTERS/Bobby Yip

June 29 (Reuters) – U.S. fiber maker Lycra has obtained new ownership, with creditors of its former father or mother organization Shandong Ruyi Engineering Team (Ruyi) (002193.SZ) getting whole equity manage after the Chinese fashion conglomerate defaulted on a $400 million loan.

The new owners consist of Hong Kong-primarily based China Everbright Ltd (0165.HK), Tor Investment Administration and Seoul-based mostly private equity firm Lindeman Associates and its affiliate Lindeman Asia (277070.KQ).

“We have implemented swiftly the proactive steps demanded to secure and improve the long term of The LYCRA Organization and to insulate the Corporation absolutely from its previous shareholder’s money distress,” the new entrepreneurs claimed in a statement.

Lycra CEO Julien Born mentioned in a independent statement: “the new possession structure provides the necessary backing from knowledgeable specialists who share our extended-phrase vision.”

Reps for Ruyi did not immediately respond to a request for comment.

Ruyi bought regulate of Lycra from U.S. conglomerate Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the offer.

The Chinese style agency set out to build a world luxury garments empire, embarking on a obtaining spree that incorporated London-centered suitmaker Aquascutum, Paris-centered trend home Cerruti 1881 and vogue group SMCP.

But the conglomerate has struggled less than the excess weight of its personal debt and its economical challenges worsened with the COVID-19 pandemic. read far more

Reporting by Akriti Sharma in Bengaluru Modifying by Edwina Gibbs

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