The Distressed Debt Wire Report - January 8, 2008

Allied, American Capital Go Off Balance Sheet for More Flexibility

Rising debt yields may drive more business development companies to create third-party funds in 2008, according to analysts. Full Story

Angry hedge fund investors are claiming that Ritchie Capital Management made false statements to a bankruptcy judge in New York and is keeping them in the dark about their own investments. The investors are set to confront the troubled fund manager in a Chicago bankruptcy court next week. Full Story

SageCrest, a $750 million hedge fund that has been facing redemption demands from its investors, renegotiated the terms of a credit line it had fallen out of compliance with. Full Story

• Bayside, Z Capital Each Looking to Raise $1B Funds
• Scotia Pacific Agrees to Allow Alternative Reorganization Plans
• Einhorn Suit Against Allied's Business Loan Express Dismissed
• BDCs, Fund Managers May Be Better Positioned than Banks for 2008, Fitch Says
• Movie Gallery Reorganization Plan Would Put Sopris in Control
• Dura Struggling to Raise Bankruptcy Exit Financing
• Prophet Equity to Start Investing $100M Fund
• Healthcare Finance Names Gelwicks to Start Investment Banking Group
• FirstLight Arranges $52M for Wicks Group
• Mack Joins MorrisAnderson
• Compass Raises $101M for Financing