The Distressed Debt Report - May 22, 2007

Funds Use Late Filings with SEC to Call Defaults, Demand Fees

Affiliated Computer Services is going to court to try to quash an investment strategy that has grown trendy among some hedge funds and that is reviled among the companies it targets. Full Story

Lenders Sanguine About April Retail Sales Decline

The 1.8% drop in retail sales in April left many retailers and holders of loans to retailers largely, and surprisingly, unconcerned. “I don’t think the April numbers are as bad as people think they are,” says Irene Marks, a managing director at Wachovia. Full Story

Company Said to Be Worth Substantially Less than Its Debt

Nutrition bar maker Nellson Nutraceutical may have a tough time selling itself for an amount even close to the $320 million a bankruptcy court estimated it was worth in January. Full Story

• Consultants Allege Fraud by Cerberus
• CLO Roundup: NewStar to Buy Loans
• CapitalSource to Buy Savings Bank in $652M Deal
• Golub Files for $150M IPO
• Fortress Earnings Decline in First Quarter as Public Company
• Oaktree Reported to Plan $700M Private Placement
• Strook Law Firm’s Restructuring Team Jumps to O’Melveny
• Former New York Times CFO Joins Veronis Board

UniCredit Provides $300M for Gold Miner

Materials company Polypore Inc. took out a new $470 million senior credit facility to repay older debt and increase its borrowing capacity, in one of the biggest recent debt financings by a middle market company. Full Story