Oaktree Capital Management has increased its stake in Panrico in a deal that will see the investment firm pay down the Spanish baker’s outstanding debt.

The US investment firm will take full-control of Panrico, increasing its stake from the 86% it holds.

Panrico has moved to restructure its balance sheet as it looks to stabilise its business.

In 2010, the firm’s creditors took control of the heavily-indebted group. Since then, Oaktree has increased its stake in the company in stages by buying up Panrico’s debt.

Panrico has also restructured its industrial operations to reduce its cost structure, while also increasing its focus on value-added brands.

This strategic direction remains “unchanged”, a spokesperson said.