The Distressed Debt Report - September 7, 2006

Despite rising yields on syndicated second lien loans, Standard and Poor’s is holding on to a controversial view that second lien investors are not seeking adequate pricing for their risks. Full Story

Data Raises Question of Long-Term Change in Debt Market

In the latest signs of borrowers’ resilience, the number of companies filing for bankruptcy fell to a five-year low this year, according to a new report. At the same time, a noted academic expert on corporate debt is questioning if companies can continuing meeting their obligations at higher than average rates for years to come. Full Story

Firm Single-Handedly Makes Booming Market for Nonconvertible Debt

Canadian engineering firm Thinkpath Inc. may not, to most investors, seem in very good shape to take on debt. Its assets at the end of the second quarter totaled only $8.89 million, almost half of which was goodwill. Its net loss for the first half of the year totaled $1.35 million on $6 million in revenue. Auditors have expressed doubts about the Brampton, Ontario, company’s ability continuing as a going concern. Full Story

• Churchill To Issue Mid-Market CLO After Centre Acquisition
• Clothing-Maker Bankrupt Only 2 Months After $97M Financing
• Xerion, Shaw Surrender Oneida to JP Morgan
• New SEC Rule Could Bring More Transparency to Debt Markets
• Former Equipment Finance Chief Sues Citigroup
• BIA, Marquette Make $10M Mezz Loan to TV Production Company

Allied Capital financed the management buyout of an employee benefits management firm and Wachovia Securities backed an acquisition by a software company in two of the more significant recent middle market financings. Full Story