The Distressed Debt Report - June 26, 2007

Traditional Terms Giving Way to ‘Bad Boy Guarantees’

The volume of so-called covenant-lite loans has been surging for months in the market for broadly syndicated debt. Now, even middle market borrowers are able to demand more generous borrowing terms,according to some lenders. They’re seeing traditional loan conditions give way to so-called bad boy guarantees. Full Story

Buyouts Continue in Industry’s Turmoil

Despite grave warnings from credit rating agencies – bordering on “Repent Now for the End is Near” – smaller media companies have been among the hottest targets for leveraged buyouts this year. Full Story

Enforceability in Distressed Trades Remains in Doubt

R2Investments quietly settled a lawsuit that was widely expected to provide legal guidance on the enforceability of so-called big boy letters. The letters are contracts used in securities trades where the buyer agrees not to hold the seller liable for having inside information about the stock or debt issuer. Full Story

• IDT Accuses Blackstone of Fraud in Winstar Auction
• Unbiased Solvency Opinions Crucial for Dividend Recaps
• Allied, After SEC Settlement, Still Faces Criminal Investigations
• Ronco Seeks DIP from Laurus
• Harbinger, GoldenTree Drop Suit for Control of Granite
• American Capital Strategies Loads $1.6M Revolver
• LBC Hires GE’s Choksi
• Fortress’s Griffin Resigns
• FirstLight Does First Deal
• Allied Launching New Fund
• Credit Suisse, Tennenbaum Provide $315M For ITC Deltacom