KKR's Acquisition of Dutch bikemaker Accell Group is unraveling further as lenders prepare for a second restructuring. The deal, initially valued at €1.7 billion, has become a major headache for the US private equity firm.

Accell owns well-known brands including Raleigh and Babboe. KKR first acquired the company in 2019, loading it with debt. Previous financial difficulties emerged during the pandemic, leading to initial restructuring talks. Now, lenders face another potential debt-for-equity conversion.

Industry experts point to overleveraging and shifting consumer demand post-pandemic. KKR's equity cushion has largely evaporated. Creditors are bracing for potential losses while exploring recovery options. The outcome could reshape Accell's capital structure significantly.

Future restructuring terms remain unclear. Lenders may need to accept steep losses to salvage value. KKR's exit strategy from its remaining stake is now under intense scrutiny. Market watchers expect volatility in cycling sector valuations.