Former Philips subsidiary Lumileds has filed for bankruptcy to restructure its debt. A group of creditors has agreed to cut debt and provide fresh funding in exchange for control over the company. This means Apollo Global Management, the private equity company that acquired the Agilent-Philips joint venture in 2017, is set to lose grip on its asset. The deal is expected to cancel 1.3 billion dollars in debt for the supplier of automotive and specialty LED lighting.
“We’ve proactively taken steps to deleverage our balance sheet given the ongoing challenges presented by global supply constraints, Covid-related issues and the crisis in Ukraine. This recapitalization will enable us to further accelerate our efforts as innovator within the specialty lighting industry,” comments Lumileds CEO Matt Roney.
Lumileds is co-headquartered in the Netherlands and has a site in Eindhoven. Employees won’t be affected by the deal, according to a press statement.