MIDDLETON, England (April 24, 2009)—Polyurethane foam maker Vita Group said a United Kingdom court has agreed to a restructuring that will reduce its debt after an injection of funds from a private equity company.
The firm said it debt will be reduced to $129.5 million after the debt-for-equity deal with U.S.-based TPG Capital. The U.K. High Court approved the restructuring, and Vita Group said it will significantly strengthen its balance sheet.
The 60-year-old company has announced layoffs that cut its staffing to 5,000 as it struggled to meet debt repayments in the current difficult economic climate. A report in Crain's Manchester Business put Vita's debt at $840 million.