The Swedish private equity firm EQT seems to be experiencing a series of setbacks with over-indebted companies. In Germany, the financial investor no longer wants to pay interest on part of the billions in debt owed by fiber optic provider Deutsche Glasfaser. Meanwhile, in France, the financial situation of nursing home operator Colisée is coming to a critical point. The main private equity creditors are taking over the company from its previous main owner, EQT, in exchange for debt relief.

Colisée has received approval from almost all of its financial creditors for a restructuring that will reduce its net debt by around a third to 1.2 billion euros (1.4 billion dollars), according to a statement. Bloomberg had already reported in September that the takeover of the company by its creditors was imminent.

Colisée, 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, according to Monday's announcement. 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 and marks EQT's exit from the company. 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 acquired the company in 2020 and 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.