The Distressed Debt Alert

Investors Bid for Failed Bank Commercial Real Estate Loans

More than a dozen investors have submitted bids to the Federal Deposit Insurance Corp. for a $1.1 billion portfolio of commercial real estate loans that were made by Franklin Bank, IndyMac Bank and other failed banks, the Wall Street Journal reported.

Source: News Story

Latham International, a Latham, N.Y.-based manufacturer of in-ground residential swimming pool components, filed for a pre-packaged Chapter 11 bankruptcy after reaching an agreement with its senior secured lenders.

Source: Press Release

Black Diamond Capital, a Greenwich, Conn.-based debt investment firm, raised $206 million in its first closing on its third fund, BDCM Opportunity Fund III, according to a filing with the Securities and Exchange Commission.

Source: SEC Filing

Heartland Publications, which operates 50 paid-circulation newspapers and numerous other free publications in nine states, said it filed a prepackaged Chapter 11 bankruptcy after reaching an agreement with the majority of its first-lien lenders.

Source: Press Release

Hawkeye Renewables, a subsidiary of ethanol producer Hawkeye Energy Holdings, said it filed a prepackaged Chapter 11 bankruptcy after its first-lien lenders accepted its restructuring plan, which includes a debt-for-equity exchange.

Source: Press Release

Appaloosa Management, the hedge fund firm run by David Tepper, has invested about $2 billion in distressed commercial mortgage-backed securities hoping to make another big score after collecting a $7 billion profit from investing in beaten-down bank stocks, the Wall Street Journal reported.

Source: News Story

THL Partners shelved a $300 million public offering for its THL Credit business development corporation, peHUB reported.

Source: News Story

Federal Deposit Insurance Corp. examiners are scrutinizing banks' exposure to commercial real estate mortgages and acquisition, development and construction loans, the web site FinCri Advisor reported. The FDIC is said to be demanding that about 2,000 banks justify loan concentrations that exceed regulators' suggested thresholds.

Source: News Story

NextMedia Group, an owner of radio stations and outdoor advertising, filed a prepackaged Chapter 11 bankruptcy and will transfer control of the company to certain creditors, Reuters reported.

Source: News Story

Tennenbaum Capital Partners, a Santa Monica, Calif.-based firm specializing in distressed investments, funded the third and final closing of its $454 million Tennenbaum DIP Opportunity Fund.

Source: Press Release

TLC Vision Corp., a St. Louis-based eye care services company, said it reached an agreement with holders of the majority of its senior secured debt and filed a prepackaged Chapter 11 bankruptcy.

Source: Press Release