The Distressed Debt Report - August 7, 2006

New Opportunity After Banks Downsize Staffs

Seasoned restructuring professionals are in hot demand at hedge funds, and that should be good news for underutilized and downsized executives at some commercial banks. Full Story

Default Rates Stay Stubbornly Low, Despite All Indicators

At distressed debt fund Longroad Asset Management, they’re confident that the number of investment opportunities will eventually pick up, says Joseph Catalano, a director at the firm. What may be of concern, however, is whether too many of their competitors have the same belief. Full Story

SBA Also Planning New SBIC Private Equity Program

The Small Business Administration will not impose a new fee it had considered for mezzanine debt funds operating as Small Business Investment Companies, and separately could put in place a new SBIC program to boost private equity investment. Full Story

• Apollo Cofounder Starting Lending Business at Magnetar
• Brown Brothers Launching Two New Funds
• JP Morgan, D.E. Shaw Groups Square Off for Control of Oneida
• Black Diamond Taking Charge in Industrial Restructurings

Preschool Chain Borrows $215M, Iridium Gets $210M

GE Commercial Finance provided a $217 million senior credit facility for Christie/AIX Inc. to finance the rollout of its digital cinema equipment. The deal was one of the larger ones in what appears to have been a slow past couple of weeks in middle market debt finance. Full Story