Oaktree, Sona Seek Early Repayment of Essity Bonds in Court

-- A group of Essity AB bondholders, including Oaktree Capital Management and Sona Asset Management, sued the firm in UK courts, escalating a dispute over claims that an event of default occurred on its debt. The noteholders have previously told the company that they were entitled to early repayment because of the sale of its 51.6% stake in tissue maker Vinda International Holdings Ltd to Indonesian tycoon Sukanto Tanoto. A group of investors in Essity’s bonds due in 2029, 2030 and 2031 has been sending letters to the company throughout the year, requesting early repayment, via its advisers at White & Case LLP and Houlihan Lokey Inc. In a press release in October, Essity acknowledged it had received a demand for early repayment from “a few” holders of its bonds.