Junk investors unimpressed by CP Kelco's $50m of new equity

Lehman Private Equity is to inject $50m (€57m) of fresh capital into struggling US food gums group CP Kelco, but the move has failed to appease the company's bond investors.

CP Kelco said that it would be receiving $50m from its existing shareholders. Informed sources have said that Hercules, the only other shareholder (with a 29% stake), cannot afford to contribute more equity, leaving Lehman to come up with the cash.

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