Cerberus Capital Management has lost its ownership of money-losing military facilities contractor, IAP Worldwide Services, to creditors.
“They are basically out,” a source close to the process said.
Stephen Feinberg ’s Cerberus has made big money for investors, but is best known for driving Chrysler into bankruptcy.
The once-influential IAP announced Thursday it had signed a restructuring deal that will reduce its debt by more than 80 percent, declining to give more details.
In January, The Post reported exclusively that senior creditors Eaton Vance, Oppenheimer and Credit Suisse First Boston were close to repossessing IAP from Cerberus after it tripped a debt covenant.
Cerberus — despite losing control of the business — is still providing a $50 million credit line giving IAP the means to fulfill its government contracts.
Cape Canaveral, Fla.-based IAP manages airfield operations, provides medical supplies and shelter, and runs dining-hall operations throughout the Middle East and Asia.
Locally, IAP installed and operated generators after Hurricane Sandy, helping restore the New York City subway, Wall Street buildings and the World Trade Center site.
Cerberus bought the contractor in 2004 and has done well making multiples of its equity investment back through dividends despite the company’s present troubles.
IAP says it is still working with customers in Afghanistan, Libya, Saudi Arabia and Kuwait.