Lebara Creditors Complete Takeover Through Debt-for-Equity Swap

Lebara Group BV’s bondholders took direct control of the phone card seller that defaulted on around 350 million euros ($390 million) of debt last year after a string of reporting errors and delayed audits.

Creditors finalized a debt-for-equity swap which will also leave the company with 257 million euros of restructured debt, according to a statement by the bond trustee on Thursday. Bondholders also provided 10 million euros of fresh credit through working capital notes in December.

Lebara’s previous owner Palmarium, a Swiss private equity fund, hired Norway’s Pareto Securities to finance its takeover of the company in ...