British Vita "given time in debt talks"

NORTH West chemicals company British Vita has been given breathing space by its lenders as it bids to avoid breaching its banking covenants.

Weekend reports said the company, taken private for £668m by private equity group TPG in 1995, would now look to recapitalise in the new year.

British Vita, which makes polystyrene and latex for a range of sectors is said to be struggling to keep up with the payments on its £630m of debt because of a slump in some of the the sectors it serves, such as automotive and home furnishings. 

The reports said the options being considered include TPG injecting funds or lenders swapping debt for equity to reduce its debt.
TPG and British Vita declined to comment.

British Vita was formed in 1949 in Oldham with just £100 of investment and is now a worldwide group with thousands of staff.

Until TPG’s takeover the headquarters of the business remained in Middleton, but it is is now in Luxembourg.

In the North West the group has sites in Salford, Middleton, Preston, Accrington, Macclesfield, Dukinfield and Warrington.