Spain: Asset investor GSO Capital Partners has gathered a group to invest Euro345m in Giant Cement and its owner Cementos Portland Valderrivas. The troubled company, which is reportedly set to close three of its eight factories in Spain, will use the capital injection to refinance and pay down existing debt. In 2011 Cementos Portland recorded a loss of Euro337m, due primarily to cement consumption in Spain falling by 64% from its peak in 2007.

Due to the size of the transaction, GSO decided to bring a group of co-investors into the deal, the majority of which are limited partners in GSO's funds. The Blackstone Group's credit affiliate will invest primarily from its 'rescue' lending fund, GSO Capital Solutions Fund I, which collected more Euro2.6bn in 2010.

GSO is one of many private equity groups to focus on opportunities related to the ongoing economic chaos in Europe, as firms including Kohlberg Kravis Roberts, Apollo Global Management and Oaktree Capital Management have all been focusing on credit-related opportunities in the region.

"We expect Europe to be a happy hunting ground for cash-rich investors who have the skills, resources and patience to pan for gold in Europe's distressed loan portfolios and debt riddled corporates," commented Andrew Traynor and Anthony Smyth of law firm Walkers.