BrightHouse’s bondholders have given the retailer a week to come to a debt-for-equity deal for the embattled business.
According to Sky News, a consortium of bondholders have set an informal deadline of November 6 to find a deal in order to restructure BrightHouse’s balance sheet.
The firms involved are Alteri Investors, which holds almost one-third of the rent-to-own retailer’s bond, alongside Highbridge Capital Management, HSBC and Oceanwood Capital Management.
The firms have reportedly presented an outline of their debt-for-equity swap plan to BrightHouse’s majority owner Vision Capital.
While it is unknown if a deal may be reached by November 6, the move is an indication of imminent change of control at Brighthouse, which was ordered by the Financial Conduct Authority to repay £14.8 million in compensation to customers earlier this month.
City sources told Sky News that Vision Capital would probably end up retaining only a small stake in the retailer if a deal is reached.
Meanwhile, Brighthouse advisers launched a formal sale process for the retailer this week.