Banks Offload Colisee Debt Ahead of Restructuring Deadline

Some bank lenders to Colisee Group SAS are offloading their exposure to the cash-strapped care home operator at steep discounts, as an August deadline looms over restructuring talks between the firm and its debt holders.

A €20 million ($23.4 million) portion of the EQT-owned company’s revolving credit facility was sold recently at a price below 60 cents on the euro, according to people familiar with the matter. There have been several similar trades executed lately, the people added, asking not to be identified as the matter is private.

The deeply discounted sales come amid increasingly tense negotiations between the French ...