Private equity firm Blackstone has reached an agreement in principle to hand over control of German outdoor brand Jack Wolfskin to a group of its lenders in a debt for equity swap, sources close to the situation said.

Under the terms of a lender-led debt restructuring plan, lenders will write off €80m and reduce Jack Wolfskin’s debt to €210m from €330m (US$350.06m)and inject €25m into the business in return for ownership, one of the sources said.

Blackstone has verbally agreed to the deal and a co-ordinating committee of lenders is seeking 100% support from the wider lender group for the plan, the sources said. The deal is expected to be closed by summer.

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