The Distressed Debt Report - April 10, 2007

Though Analysis May Hint at Downturn

The leveraged buyout market, particularly for middle market companies, may have something in common with Mark Twain when he said that reports of his death “have been greatly exaggerated.”

So-called “pledge funds” are bidding more often for subordinated debt and distressed debt assignments, market players say, and more established funds are sometimes challenged to match the pricing and terms they offer. Full Story

New Structures Meant to Boost Returns on Equity

CIT Group and American Capital Strategies are bringing new middle market collateralized loan obligations to market, using a managed, off-balance sheet structure designed to bolster returns on equity. Full Story

• Le-Nature’s Ruling Raises Legal Concerns for Distressed Investors
• Silver Point, Harbinger Argue for Control of Broadcaster
• Ritchie May Sell $1B in Assets to Reservoir
• Western Technology Raises 12th Fund With $1B in Capacity
• CIT Selling Shares in Health Care REIT
• SBA Licenses New SBIC with Plans to Raise $100M

E-Commerce System Provider Raises $240M

Two small, North American-based oil explorers raised $1 billion combined in recent weeks. In another large debt financing by a middle market company, a provider of ecommerce systems borrowed $240 million. Full Story