Blue Owl Capital

Monarch and General Atlantic take control of Loparex in USD 1bn restructuring

Monarch Alternative Capital and General Atlantic are to take majority control of coated-paper maker Loparex through a restructuring of roughly USD 1bn that allows the company to avoid a bankruptcy filing. The deal removes more than USD 400m of liabilities by converting about half of Loparex's first-lien debt into equity and wiping out a junior loan held by Blue Owl Capital. Loparex receives around USD 80m of new equity capital.

Why this mattersThe debt-for-equity swap shows lenders absorbing losses to keep a mid-size specialty paper supplier out of bankruptcy, a bellwether for leveraged packaging-adjacent credits.

• Restructuring is valued at roughly USD 1bn
• More than USD 400m of liabilities will be shed from Loparex's balance sheet
• About half of the company's first-lien debt will be swapped for equity
• A junior loan held by Blue Owl Capital will be wiped out
• Loparex will receive around USD 80m in new equity capital
• Monarch Alternative Capital and General Atlantic will own the majority of the restructured company

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