Spectrum Brands files for creditor protection

Burdened with debts of $ 2.6 bn, the American mixed-operations group Spectrum Brands has filed for protection against creditors at the U.S. Bankruptcy Court. Spectrum Brands is the parent company of United Pet Group, which owns Tetra. The mixed group had previously reached agreement with its creditors to convert credits amounting to $ 840 mio into equity. This refinancing is taxable, however, and so Spectrum Brands decided to file for bankruptcy. The company released a press statement saying that it had no plans to sell off operations, in spite of the precarious financial situation. In the fourth quarter of the current financial year, United Pet Group increased its global net sales by 7.7 per cent to $ 159.2 mio.