Carl Lindner's American Financial Group will lose its controlling interest in Chiquita Brands International Inc. in a restructuring announced Monday, but Mr. Lindner will remain on the board of directors.

WHO'S AFFECTED

Here's how different parties are affected by the restructuring deal announced Monday:   • Bondholders: These holders of Chiquita's debt get $250 million in new debt plus 35.1 million shares of the newly issued stock, or 87.75 percent. And holders of subordinated debentures will get 3.1 million shares, or 7.75 percent of the new stock.   • Preferred shareholders: This group will get 250,000 shares, or about 0.62 percent, and warrants to buy 4.2 million more.   • Management: Chairman Carl Lindner and CEO Steve Warshaw will get 1 million shares of the new stock, or about 2.5 percent.

        Hoping to emerge solvent after a decade of financial misery, Cincinnati-based Chiquita struck a deal with holders of its debt to issue 40 million new shares of stock, exchanging that for more than $800 million in debt.

        With the bondholders having signed a deal, Chiquita will file a reorganization plan in federal bankruptcy court soon. Its far-flung operations will remain in place.

        Officials hope that the bankruptcy process — which could last about three months — is rock bottom for the company. Chiquita lost $94.9 million last year, and its stock price slipped Monday to an all-time low of 60 cents a share.

        But the deal will cut annual interest costs by about $60 million and give the company what chief executive officer Steve Warshaw called “by far the healthiest balance sheet in the industry.”

        Mr. Lindner, the Chiquita chairman, and Mr. Warshaw will remain on the board — along with five bondholder nominees — and Mr. Warshaw is likely to remain CEO.

        The deal should cut American Financial's interest to about 7 percent of outstanding stock.

        Because bondholders get most of the new stock, current common shareholders will see their interest diluted. They get only 1.38 percent of the new shares, plus warrants to buy additional shares.

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