The Distressed Debt Report - November 21, 2006

Big Dogs of Private Equity Heading Down Market

The wave of capital rolling into private equity funds and growing competition for deals is pushing big players downstream into the active and crowded middle market. Rumors are circulating that private equity behemoth Texas Pacific Group is raising a fund specifically targeting the sector, while Silver Lake Partners and Shah Capital Partners have reportedly joined forces to raise capital to invest in middle market companies. Full Story

’20-Day’ Vendors Can Jump to Front of Line in Bankruptcy

The increased powers of trade vendors in bankruptcy proceedings are complicating lenders’ prospects for recovery, and the situation is expected to worsen as liquidity tightens. Full Story

Time Limitations Imposed by Bankruptcy Reforms May Have Loopholes

Market players are looking to the outcome of the Calpine bankruptcy case for guidance on whether courts might sometimes extend the untested and potentially cumbersome 18-month deadline for companies to file their own reorganization plans. Full Story

• Trade Claims Growing Popular With Distressed Investors
• Fortress Files for $750M IPO, Preparing for Expansion
• Tricadia Prices First Middle Market CLO
• Merrill Starts Middle Market Energy Group
• Second Lien Lenders Lose DIP Decision in Closely Watched Dura Case

Oil Company Issues $220M Convertible, Allied Backs Management Buyout

GE Healthcare Financial Services provided a $405 million senior secured credit facility to finance an acquisition by a medical imaging company, in one of the more notable recent middle market debt financings. Full Story