The Distressed Debt Alert

Rancher Energy Files Chapter 11

Rancher Energy, a Denver-based oil development and production company, filed for Chapter 11 bankruptcy, the Wyoming Business Report reported.

Source: News Story

CIT Group reached loan agreements with its top bondholder Carl Icahn and lender Goldman Sachs, as the business finance company prepares for a possible prepackaged bankruptcy filing, Bloomberg News reported.

Source: News Story

Magnum Hunter Resources Corp. agreed to buy the oil and gas exploration and production assets of Triad Energy out of bankruptcy for about $81 million, the Houston Business Journal reported.

Source: News Story

Investment bank Lazard Ltd recorded its best quarterly results ever for revenue from restructuring advisory work. The firm posted $119.1 million in restructuring revenue for the third quarter, almost five times more than in the third quarter in 2008.

Source: Press Release

Damon's International, a Pittsburgh-based chain of 53 casual dining restaurants, filed for Chapter 11 bankruptcy, Columbus Business First reported.

Source: News Story

GPX International Tire Corp. filed for Chapter 11 bankruptcy. The company said in a statement that it plans to divide into three businesses, which will be sold off.

Source: Press Release

Crabtree & Evelyn, purveyor of specialty soaps, fragrances and lotions, filed its reorganization plan in bankruptcy court, Reuters reported.

Source: News Story

Matrix Alternative Asset Management and PVE Capital have teamed up to form the Matrix PVE Global Credit Fund.

Capital raised and commitments currently run to $150 million, London-based Matrix said in a statement. The fund will invest globally and take long and short positions in credit securities.

Matrix, which has about $4 billion under management, manages hedge and private equity funds and also offers brokerage, property management, and structured finance services.

PVE's chief investment officer is Gennaro Pucci, formerly of Credaris, where he managed more than $1 billion.

Source: Statement

Former JPMorgan and Long Term Capital traders have formed Sothic Capital, a $100 million fund targeting distressed debt issued by companies in the U.K. and Europe, the Financial Times reported.

The fund's management structure is more favorable to investors than the typical 2 and 20 arrangement, the Times said. Clawback provisions escrow half the yearly fees, which will be returned to investors if the fund does not show a profit in the following year.

Gertjan Koomen, Sothic's chief investment officer, headed one of JPMorgan's credit units until he left last year.

The new fund's CEO is Didier Matineau, once a strategist with Long Term Capital.

Source: News Story

Fifth Third Bancorp has established Fifth Third Sponsor Leveraged Finance, a group that will focus on lending to private equity sponsors in deals involving companies with EBITDA in the $10 million to $50 million range.

Source: Press Release

Getzler Henrich & Associates, a turnaround and restructuring firm, said it hired Marc Adelson as a managing director. Adelson was previously a senior managing director with CIT Group.

Source: Press Release

U.S. distressed debt was the main ingredient in €759 million ($1.1 billion) worth of collateralized debt obligations sold by Deutsche Pfandbriefbank, an offshoot of nationalized German bank Hypo Real Estate, Reuters reported.

The auction drew buyers from the U.S. and Europe.

Source: News Story

Phoenix Coyotes owner Jerry Moyes will sell his bankrupt team to the National Hockey League for $140 million, Bloomberg News reported.

Source: News Story

Specialty finance company Ares Capital Corp. agreed to buy business development company Allied Capital Corp. for $648 million.

Source: Press Release

Los Angeles-based investment bank Imperial Capital hired two former Barclays Capital high-yield executives to staff a new office in Boston. Christopher (Chip) Mellen and Diana Knightly are joining Imperial as managing directors.

Source: Press Release