• Lycra has gained new ownership after its former parent company defaulted on a $400 million loan.
• New owners consist of Hong Kong-based China Everbright Ltd and Seoul-based Lindeman Partners.
• Ruyi bought Lycra from Koch Industries for $2.6 billion in 2019, borrowing about $1 billion for the deal.

U.S. fiber creator Lycra has acquired new possession, with lenders of its previous parent organization Shandong Ruyi Technology Group (Ruyi) (002193. SZ) taking full value control after the Chinese design combination defaulted on a $400 million credit.

The new proprietors comprise Hong Kong-based China Everbright Ltd (0165. HK), Tor Investment Management, Seoul-based private value firm Lindeman Partners and it’s subsidiary Lindeman Asia (277070. KQ).

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“We have carried out quickly the proactive advances expected to secure and reinforce the fate of The LYCRA Company and to protect the Company completely from its previous investor’s monetary trouble,” the new proprietors said in an explanation.

Lycra CEO Julien Born said in a different proclamation: “the new possession structure gives the essential support from experienced experts who share our drawn-out vision.”

Delegates for Ruyi didn’t promptly answer a solicitation for input.

Ruyi purchased control of Lycra from U.S. aggregate Koch Industries for $2.6 billion in 2019, getting about $1 billion for the arrangement.

The Chinese design firm set off to make a worldwide extravagance clothing realm, leaving on a purchasing binge that included London-based suitmaker Aquascutum, Paris-based style house Cerruti 1881, and design bunch SMCP.

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However, the combination has battled under the heaviness of its obligation and its monetary challenges deteriorated with the COVID-19 pandemic.