Euro nod to bank deal for Dyson

Lloyds TSB and Svenska Handelsbanken will take majority ownership of the Sheffield-based firm under a debt-for-equity swap.

It came close to administration due to entering the recession with a heavy debt burden, combined with crashing sales. The group de-listed from the London Stock Exchange earlier this year.

Shareholders receive 12 per cent of the company's equity, with its banks taking a 51 per cent stake by converting 12.8m of their debt into equity and receiving 5m preferred shares.

The banks will refinance another 35m of their debt in return for security over the group's assets, and will lend Dyson another 4.5m of working capital.

"The operation arises in the context of a capital restructuring of Dyson. Lloyds TSB Bank and Svenska Handelsbanken are both lenders to Dyson. After the restructuring, the two banks will have joint control over Dyson," said the European Commission in a statement.

Dyson Group is the holding company of a group of firms active in the manufacture and sale of alumina fibre, insulation components for automotive catalytic converters and exhaust systems.

It is led by Julian Cooper, a restructuring expert who joined the 200-year-old business last January.

Dyson's origins date back to the 19th century, when a ceramics factory opened in Sheffield in 1810. It became a leading producer of refractories and related ceramics products. It floated on the London Stock Exchange in 1958.