A deal has been finalized by Foundever Group, a struggling business-services firm, alongside a group of its lenders to reduce its substantial debt load, while its main investor injects fresh funds and changes top management. A portion of their existing debt - equivalent to 57.5 cents on the dollar - will be swapped for a fresh term loan. "The new securities will include stronger safeguards against future liability-management maneuvers," a source familiar with the negotiations said.
The Mulliez family, which controls the Auchan supermarket chain, will contribute $225 million in new equity, while Foundever will add $25 million from its own cash reserves.
Sources said that some steering committee lenders, including Sound Point Capital Management and Polus Capital Management, will receive improved terms - an extra 10 cents per dollar recovered.
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Neither Foundever nor the Mulliez family provided immediate responses when asked for comment.
This deal marks the end of a long-running conflict between Foundever (formerly Sitel) and its lenders. Last year, a group of creditors advised by law firm Gibson Dunn & Crutcher formed a cooperation agreement in preparation for possible restructuring negotiations.
The debt exchange was structured to give creditors a significant stake in the company's upside, while the new loan's enhanced protections aim to prevent future financial engineering that had previously eroded trust. This combination of debt reduction and equity injection provides Foundever with a more sustainable capital structure.
As part of the exchange, creditors approved a complex swap of debt securities that required majority consent, with the new term loan designed to prevent future financial maneuvers that had previously eroded trust. The capital injection from the Mulliez family and Foundever's own cash provides immediate liquidity, while the debt reduction lightens the company's interest burden substantially. This gives Foundever room to refocus its business strategy under new leadership, a critical step given the mounting competitive pressure from artificial intelligence.
Foundever was created in 2021 through the merger of Sitel and SYKES, a deal that loaded the company with billions in debt. The Mulliez family, which had been the majority owner of Sitel, remained in control. As interest rates climbed and demand for outsourced customer-service work softened, the company's heavy debt load became unsustainable. The restructuring reduces that burden and installs fresh leadership, though long-term pressures from automation persist.
Adding to the pressure, Foundever's core business model is being disrupted by advancements in artificial intelligence. An increasing number of clients are developing automated customer-service tools internally rather than outsourcing those tasks to third-party providers like Foundever. This shift has eroded demand for the company's traditional call-center and outsourcing services, compounding the strain from its heavy debt load.
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