KKR Blocks Distressed Debt Speculators From Buying Upfield Loans

KKR & Co. is blocking some funds from buying loans of Dutch food company Upfield Holdings BV as a way to keep out distressed debt speculators.

The private-equity owner has a list of acceptable lenders for Upfield’s first-lien debt that’s more restrictive than usual, and it’s already rejected some investors, according to people familiar with the matter, who asked not to be identified because the information is private.

A representative for KKR declined to comment.

Upfield, which makes margarine under brands including Flora and Country Crock, has been squeezed by soaring prices for vegetable oil due to supply shortages caused ...