June 17 (Reuters) - Spanish retailer DIA said on Monday its main shareholder will seek a deal on how to restructure the discount supermarket chain’s towering debt after missing a Saturday deadline.
The company’s biggest shareholder, investment fund LetterOne, is negotiating with a group of 17 lenders, including seven investment funds, the details of a 380-million-euro ($426.63 million) refinancing agreement, according to a source with knowledge of the deal.
The fresh money is required by the fund owned by Russian tycoon Mikhail Fridman, for DIA to implement a 500-million-euro share-capital increase approved by the shareholders’ meeting on March 20.
DIA has struggled to compete in Spain with home-grown and foreign rivals that have ploughed more money into their stores, leaving it on the brink of declaring insolvency. ($1 = 0.8907 euros) (Reporting by Andres Gonzalez and Isla Binnie; Editing by Paul Day and Emelia Sithole-Matarise)