The Distressed Debt Report - February 26, 2008

Solutia, Genesco Cases Watched for Guidance on MAC Clauses

Court cases involving footwear retailer Genesco and bankrupt chemical company Solutia are being closely watched for guidance on when banks can legally terminate funding commitments. Full Story

Souring Markets Drive Equity Investors into Debt Markets

Plummeting markets, recession anxiety and hints of stagflation are influencing investors, companies and investment banks that until recently might have preferred to deal in equity to instead orient corporate financing strategies around structured debt facilities. Full Story

Banks Said to Disguise CDO Exposure

A hedge fund manager is accusing two major banks of wrongfully seeking millions of dollars in payments under derivatives contracts in order to disguise their own exposure to turbulence in the structured product investments market. Full Story

• Axium Liquidated for $15M
• ComVest Builds Distressed Debt and Small Mid- Market Funds
• Reverse Breakup Fee Sole Remedy in United Rentals Ruling
• Military Food Supplier Chokes
• Macquarie Expanding Distressed U.S. Business
• NewStar, CapitalSource Back HCPro Holdings Acquisition
• Auto Vendor Code Blue Despite Emergency Injection
• Carb Maker Out of Gas