Kalle sponsor Clayton, Dubilier & Rice (CD&R) is planning to seek a covenant reset after the German sausage casings maker veered off budget as a result of intensifying competition in the US, according to three sources familiar with the situation.
CD&R has retained PWC to prepare an informal IBR, which the sponsor will present to lenders together with the request. Kalle will likely seek a straightforward covenant reset in exchange for fees and a margin uplift.
PWC is also working on a programme to address growth, the shape of the business and costs, one of the sources added.
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