The Distressed Debt Report - December 7, 2006

Middle Market Buyers Pay High Prices With Heavy Leverage in Station Sales

Opportunities to finance radio and television station acquisitions are exploding in the middle market as media industry giants such as Clear Channel Communications and New York Times Co. sell off small groups of stations. Full Story

The Wrong Wording Leaves Some Borrowers Vulnerable to Default

The language in the bonds covenants of movie theater chain Carmike Cinemas and outsourcing service company Affiliated Computer Services don’t appear very different, at least to the untrained reader. Full Story

U.S. Energy Biogas filed for bankruptcy protection last month after a dispute with its main lender, a Canadian fund that U.S. Energy’s own parent company had created and taken public two years ago to finance its biogas projects. Full Story

• Cerberus Names Veteran Banker Leet as European Head
• Executives Depart CapitalSource, Apollo
• Two Partners Leaving Tennenbaum for Reservoir Capital
• CLO Focus: Global Leveraged Prices $500M Issue
• GE Commercial Finance Names Chen to Head Media Group
• Key Closes $500M Mezzanine Fund
• Best Manufacturing Finds Bidder for Linens Unit
• Mellon Distressed Manager Departs With Spinout
• Meridian’s Final Reorganization Approved
• SocGen’s Entry Into U.S. Auto Fleet Finance Market Delayed by Tax Dispute

Lehman, TCW Back Buyout of Printer; Apollo, American Capital Fund Recap

JP Morgan and UBS underwrote about $650 million in new credit facilities to refinance the debt of Sirona Dental Systems in one of the biggest recent debt financings by a middle market company. Full Story