The Distressed Debt Alert

CMBS Delinquencies Rose Five-Fold, Moody's Says

The delinquency rate on commercial mortgage-backed securities rose five-fold in 2009 finishing the year at 4.9%, according to Moody's. The ratings agency expects loan performance to deteriorate further in 2010 and finish the year with a delinquency rate of 8% to 9%.

Source: Press Release

Failing financial companies may wind up in a special bankruptcy court designed for firms whose demise threatens the security of the financial system, Bloomberg News reported.

The Senate banking committee is working on a proposal to establish a court with a specially trained judge to deal with implosions like that of Lehman Bros., but the proposal is likely to face criticism from those who maintain it would offer too much protection to creditors.

Source: News Story

Black Crow Media, a Daytona Beach, Fla.-based owner of 22 radio stations in the Southeast, filed for Chapter 11 bankruptcy after GE Capital Credit Corp. filed a lawsuit against the company. GE sued to have to have a receiver appointed to protect the $38.9 million in debt that Black Crow owes, the Daytona Beach News-Journal reported.

Source: News Story

Vision Care Holdings, a Lake Worth, Fla.-based operator of 30 Lasik surgery clinics, filed for Chapter 11 bankruptcy, the South Florida Business Journal reported.

Source: News Story

Protective Products of America, a Sunrise, Fla.-based manufacturer of ballistics protection products for military and law enforcement personnel and vehicles, said it filed for Chapter 11 bankruptcy and plans to sell the company to Sun Capital Partners.

Source: Press Release

Morris Publishing, an Augusta, Ga.-based publisher of 13 daily newspapers and other non-daily newspapers, magazines and publications in the Southeast, Midwest, Southwest and Alaska, said in it received support from creditors for its prepackaged plan of reorganization and would file for Chapter 11 by next Tuesday.

Source: SEC Filing

Education Media & Publishing Group, a Dublin, Ireland-based holding company that owns Houghton Mifflin Harcourt Publishing Co., plans to restructure its debt for the second time in less than a year, the Wall Street Journal reported.

Source: News Story

Bank of America looks to have another big year generating profits from underwriting stock offerings for commercial real estate firms, the Wall Street Journal reported.

Source: News Story

Trenwith Securities, a middle market boutique investment bank which recently led several major restructuring deals, said it has rebranded itself as BDO Capital Advisors, an affiliate of BDO Seidman.

Source: Press Release

Siguler Guff, a New York-based private equity firm that invests in distressed assets, hired Solomon Owayda, former chief investment officer of SVG Advisors, as managing director.

Source: Press Release

Commercial mortgage-backed securities delinquencies rose by .42 of a percentage point in December reaching 4.71% and may not peak until 2012, Fitch Ratings said in its latest Loan Delinquency Index report.

Source: Press Release

CRG Capital, which is associated with U.S. middle-market turnaround advisory firm CRG Partners Group, joined with the World Bank's International Finance Corp. and the European Bank for Reconstruction and Development to launch a distressed asset fund to invest in Central and Eastern Europe.

Source: Press Release

Hedge funds had a very good year with distressed debt investments in 2009 as the Hennessee Group's Distressed Index recorded the second highest gain among Hennessee's hedge fund indices, with a 42.9% annual increase.

Source: Press Release