The Distressed Debt Report - October 23, 2007

Flood of Money into Distressed-Debt Funds Raises Concerns

Distressed-focused fund raising is at an all-time high, causing fund managers and turnaround advisors to question whether the supply of distressed-investing opportunities will be sufficient to meet demand. Full Story

Study Finds Distressed-Debt Funds ‘Smooth’ Reported Returns

A recent study by two university researchers found widespread reporting of false performance data by hedge funds. It is only the latest addition to a growing body of evidence that hedge fund managers hide losses to attract and hang on to investors. Full Story

Survey Finds Managers Investing in Potential Control Positions

Secured loans and subordinated debt are the most sought-after distressed assets by hedge funds, a recent survey by the Schwartz Cooper law firm in Chicago found. Full Story

• Middle Market May Offer Best Opportunities
• Cerberus May Lose More than $300M in Global Home’s Bankruptcy
• Scotia Pacific Reorganization Plan Opposed by Bank of New York
• Pentwater Focused on Discounted Bank Loans
• Golub Drops IPO in Favor of Private Offering
• Highland Capital to Raise $250M with ‘SPAC’
• Laurus’s New Debt Fund Posting High Returns
• Gladstone Valuation Not Enough to Halt Stock Slide