The Distressed Debt Report - April 8, 2008

Unsecured Subordinated Lenders Demand Higher Returns, More Equity

The distressed corporate debt market has been kind to mezzanine debt providers to middle market companies. They're taking a larger market share from second lien lenders and have new leverage to demand higher returns and larger equity positions. Full Story

Available Debt Shrinks While Costs, Lead Time Grow

The stubborn freeze in the credit markets and cooling economy has chilled the middle market leveraged buyout climate. Private equity buyers are unable to tap into as much cheap debt as they did a year ago, and they're wary of buying a company that may experience a nosedive in profits in tough times. Prospective sellers in some cases have already experienced deterioration in fundamentals and are less willing to sell off of weaker earnings. Full Story

Tama is Zwirn’s Latest Foray into Radio

Troubled hedge fund manager D.B. Zwirn was frustrated in its second attempt to foreclose on nine radio stations in Florida and Georgia that secure a loan Zwirn made. Full Story

• Earl Scheib Puts Itself On The Block
• Fedders Unsecured Creditors Sue Lenders
• American LaFrance Unsecureds Improve Position in Deal With Patriarch
• Radio Advertising Company to Hand Control to Oaktree, Silver Point
• CrossHarbor Capital Hires Citizens' Former CEO
• Middle Market CLO Outlook Set at 'Stable/Negative'
• Guggenheim Poised to Own Automotive Glass Firm