Guam – The Wall Street Journal is reporting that Advantage Partners is facing financial difficulties paying back a loan from a Japanese Bank.
Advantage Partners is the private equity firm that bought GTA TeleGuam Holdings last year.
According to the report, Lone Star and Shinsei Bank and are in talks with Advantage Partners about its investment in Tokyo Star Bank Ltd.
The WSJ quotes sources familiar with the situation as saying that “Advantage Partners’ loans are highly likely to end in default.”
The report states that the lenders include U.S. distressed debt specialist Lone Star and Japanese bank Shinsei Bank Ltd., which are taking leading roles in the discussions with Advantage Partners.
Aozora Bank Ltd., another Japanese bank, is also involved in the discussions.
The paper also reports that the talks is the end of January, when it is highly likely that Advantage will default on the approximately 170 billion yen ($2.1 billion) of loans said two people familiar with the matter
In reaction to the report, GTA Teleguam Spokesperson Cora Yanger Bejado released the following statement:
“The transaction between funds served by Advantage Partners, LLP and Tokyo Star Bank is unrelated to the investment in GTA TeleGuam. Each investment is managed separately. The issues in Tokyo Star Bank will not have impact on the investment to GTA TeleGuam. We expect to complete the transaction sometime around the middle of this year, after securing the customary regulatory approvals.”