Brit's private equity backers CVC in refinancing concerns

Brit’s private equity backers, CVC, which bought the insurer with Apollo through acquisition vehicle Achilles, is facing one of the largest ever private equity losses in history on one of its investments, according to reports.

CVC is facing a £1.7bn write down on its investment in Nine Entertainment. There are concerns over whether CVC can get lenders to refinance debts due in 2013.

There is also increasing tension in credit markets in recent months as concerns over the ongoing crisis in the eurozone drags on.

Nine’s “senior debt matures in February 2013 and there is no current requirement to refinance this debt in advance” and the company “is not in breach of any of its financial covenants or in default under any of its banking agreements,” CVC said in the statement to Bloomberg.