Swedish private equity firm EQT seems to be experiencing a series of setbacks with over-indebted companies. In Germany, its 51% owned fibre optic network provider Deutsche Glasfaser is talking to banks on the restructuring of billions in debt. Meanwhile, in France, EQT is exiting its majority ownership of nursing home operator Colisée – where private credit providers are taking control via a recapitalisation.

Under terms of the agreement, Colisée will reduce its net debt by around a third to 1.2 billion euros. The company, which is the fourth largest provider of elderly care in Europe, will also receive 285 million euros in new financing, and extend the term of its senior debt until 2031.

Current CEO Arnaud Marion will remain head of the group under the new owners. According to Bloomberg, the creditor committee that negotiated the agreement includes the private debt arms of financial investors CVC Credit, KKR, Blackstone, and HIG Capital.

The agreement follows months of negotiations. Colisée initiated debt restructuring talks at the beginning of the year, after the company missed an interest payment due to weak liquidity and delayed asset sales. EQT, which acquired the company in 2020, implemented a performance improvement plan at Colisée in the run-up to the restructuring. The private equity firm also presented Colisée's creditors with a plan that provided for the injection of new capital and partial debt relief. However, this plan was not approved.

In a statement on 8 December EQT announced the signing of a lock-up agreement as part of a financial recapitalisation plan led by its lenders, resulting in a transition of ownership. „As part of this process, EQT Infrastructure V and other shareholders are expected to exit their position,“ it stated.