US food maker Aurora Foods has said that it is undertaking a comprehensive financial restructuring aimed at reducing debt and strengthening its balance sheet.
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As part of this restructuring, Aurora said it has entered into an agreement in principle with J.W. Childs Associates, a Boston-based private equity investment firm, under which J.W. Childs will make an investment of US$200m for a 65.6% equity interest in the reorganised company. Aurora valued the transaction at approximately $925m.
Aurora also announced that it has begun discussions with its bank lenders and bondholders regarding the terms of the restructuring.