Another EQT buyout goes under the hammer
Banks will shortly conduct an auction to settle credit default-swaps on debt issued by SSP, the catering group owned by private equity group EQT. SSP recently failed to make a debt payment, according to derivatives trade body ISDA.
It’s not the first EQT-controlled leveraged buyout to run into trouble and trigger a credit event. The first loan CDS in Europe was for EQT’s ceramics products manufacturer Sanitec. The Sanitec recovery was a miserable 33 percent, but that is still by far the highest recovery to date in a European leveraged loan CDS auction.