who is the big buyer, page-11

My post on 22/5 wasn't too far from the mark
From today Melbourne Age


Nylex in finance bid


Jeff Turnbull
June 8, 2006


KERRY Stokes is believed to be playing a key role in a $40 million recapitalisation that could result in a new owner for plastics manufacturer Nylex.

It is believed Mr Stokes, chairman of Seven Network, who owns 14 per cent of Nylex, has brought in a US private equity group that met with the board and management this week.

The group will put $20 million into Nylex, effectively giving it control. Nylex closed yesterday at 4.9¢.

Another $20 million will be raised in mezzanine debt, which gives the lender the right to convert to an ownership or equity interest if the loan is not repaid on time.

Last month Nylex announced a big restructure that will cost about $10 million, and has started talks with potential financiers and existing and potential senior debt providers.

Nylex said yesterday that it was in talks with local and US companies about mezzanine financing and a capital raising.

In the past two years, Nylex has been selling off non-core business. It sold Empire Rubber, Mill Elastomers and its Frankston operation last year but is being sued by buyer Huon Corporation for lack of disclosure.

In December, it sold the AH Plant Hire business to the National Hire Group for $111 million, a company in which Mr Stokes has an interest.

Last month Nylex said underlying earnings of continuing businesses for the year to June 30 were likely to fall short of its previous guidance.