Fridman Wants Banks to Share Part of DIA Crisis Cost: Report

(Bloomberg) -- LetterOne Holdings, the investment vehicle for Russian billionaire Mikhail Fridman, wants banks to assume part of the cost of rescuing troubled Spanish supermarket chain Distribuidora de Alimentacion SA, Expansion reported.

LetterOne has been in touch with DIA’s creditor banks to say that it is ready to support the company’s 600 million-euro ($684.4 million) capital increase if certain conditions are met, the newspaper said. The main one being that banks should also assume part of the cost of the crisis afflicting DIA, Expansion said, citing people familiar with the situation it didn’t identify.

DIA fired its chief executive officer in August and issued a profit warning less than two months later as economic turmoil in Latin America buffeted its business and it struggled to compete with discounters in Spain. A spokesperson for LetterOne, which owns 29 percent of DIA, wasn’t immediately available to comment when contacted by phone.

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