Selecta Restructuring Deal Comes With Sting for Some Creditors

KKR & Co. has reached a restructuring agreement with a cohort of Selecta Group BV creditors that is set to leave investors outside of the negotiating bloc worse off.

As part of the deal, the private equity firm will transfer ownership of the Swiss vending machine operator to creditors, who will take control through a new holding company.

Selecta will slash its debt by more than €1 billion ($1.15 billion) — including part of the first-lien, or senior secured, bonds — and will receive €330 million of new money, the company said in a statement on Wednesday. That cash injection ...