Spanish retailer DIA said on Monday its main shareholder will seek a deal on how to restructure the discount supermarket chain's towering debt after missing a Saturday deadline.
The company's biggest shareholder, investment fund LetterOne, is negotiating with a group of 17 lenders, including seven investment funds, the details of a €380-million ($426.63 million) refinancing agreement, according to a source with knowledge of the deal.
The fresh money is required by the fund owned by Russian tycoon Mikhail Fridman, for DIA to implement a €500-million share-capital increase approved by the shareholders' meeting on 20 March.
In Spain, DIA is competing with home-grown and foreign rivals that have ploughed more money into their stores, leaving it on the brink of declaring insolvency.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
