Investors in $5 billion of commercial paper, or short-term debt, from KKR Financial Holdings have hired a bankruptcy lawyer to advise them on a request to delay repayment, the Wall Street Journal reported Friday.
The roughly 15 holders of the debt, from the affiliate of buyout firm Kohlberg Kravis Roberts, have hired D. Ross Martin, a bankruptcy and business-restructuring specialist at law firm Ropes & Gray LLP, the Journal reported.
The debt holders agreed on Monday to a seven-day standstill pending talks on revised payment terms, the Journal reported, citing people familiar with the matter.
The investors include General Electric and the money-management arms of U.S. Bancorp and Legg Mason , the Journal said.
KKR Financial recently sold $5.1 billion of residential mortgage assets and interest rate swaps, which will result in a $40 million loss. It now owns about $5.8 billion in mortgage loans, which it finances with note facilities of about $200 million.
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