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Oct 21, 2009

Montagu agrees to hand Linpac to lenders -sources

LONDON, Oct 21 (Reuters) – British buyout house Montagu
Private Equity signed a debt restructuring deal late on Tuesday
that will see it walk away from British packaging company
Linpac, two sources familiar with the process said.

Lenders will take on the business as a going concern,
reducing the company’s debt by 320 million pounds ($529.3
million) — 50 percent of its debt burden, the sources said.

Oct 21, 2009

Hedge fund loses $130 million on shares held by Lehman

LONDON (Reuters) – Hedge fund Harbinger Capital Partners said on Tuesday it had lost more than a quarter of its stake in sugar maker Tate & Lyle as it has been unable to reclaim them from collapsed bank Lehman Brothers.

Harbinger said 17.7 million shares — worth 80 million pounds at current prices — will not be recovered and further shares held by Lehman may also be lost.

Oct 20, 2009
via DealZone

DealZone Daily

The end of the year looks set to be full of news of rights issues and IPOs as share investors are offered a bet on next year’s economic recovery.The travails of UK transport firm National Express fill many of Tuesday’s business pages, with rivals First Group and Stagecoach both in the frame for a bid, while the debt-laden company finalises plans for a rights issue. For other Reuters stories on deals, click here.Other stories in Tuesday’s newspapers include:- Private equity firm Cerberus Capital Management is in advanced preparations to take rifle and ammunition maker Freedom Group Inc public, the Wall Street Journal reports.- India’s Reliance Capital is entering into a strategic alliance with Japan’s Daiwa Securities to set up an investment banking business in India, the Economic Times reports.

Oct 13, 2009

UK dilutes proposed airport insolvency rules

LONDON, Oct 13 (Reuters) – The British government on Tuesday
watered down proposed new solvency rules for big airports,
dropping plans for a special administration regime to ensure
airports stay open even if their operators go bust.

The industry had claimed the government’s original plan
would have meant that investors in airport infrastructure
projects could demand higher returns, pushing up the cost of
financing development projects.

Oct 9, 2009

Banks “amend and pretend” as investors stay clear

LONDON (Reuters) – Despite an equities rally and an uptick in high-yield debt, owners of struggling companies are putting in only a fraction of the cash needed for restructuring, leaving banks with the bill for billions worth of loans.

Private-equity owned companies, which borrowed hundreds of billions of euros through leveraged buyouts in the middle of the decade, will depend on the banks to roll over their debts on easy terms, analysts say.

Oct 7, 2009

Bingo chain Gala lenders set debt plan-sources

LONDON, Oct 7 (Reuters) – Britain’s biggest bingo club
operator Gala Coral may end up in the hands of lenders if a
proposal from a group of debt holders is accepted, two people
with knowledge of the situation told Reuters.

The gaming company — owned by private equity firms Candover
<CDI.L>, Cinven [CINV.UL] and Permira [PERM.UL] — is in talks
with lenders to avoid breaching the terms of its 2.7 billion
pounds ($4.3 billion) of bank debt.

Oct 5, 2009

Lehman Europe administrator has new asset plan

NEW YORK/LONDON, Oct 5 (Reuters) – The administrator for
Lehman Brothers Holdings Inc’s <LEHMQ.PK> European unit on
Monday unveiled a new plan to dole out the collapsed investment
bank’s assets directly to creditors.

The administrators, said they would put forward a
“contractual solution” that would allow them to distribute “a
very significant portion” of the $8.9 billion in securities
assets currently under their control, according to a statement
published on the administrators’ website.

Oct 2, 2009

Company rescues need doctors, not engineers

LONDON (Reuters) – Private equity firms specializing in turning around ailing companies are preparing to strike a series of deals based more on operational improvement than balance-sheet fixes.

With European banks and, to a lesser extent companies, readying a wave of disposals of battered companies, a new phase of restructuring will call on acquirers with a wide set of skills.

Sep 30, 2009

Opportunities in restructuring for private equity

LONDON (Reuters) – Private equity houses are set to scoop up a raft of cheap assets as companies slim down, now that the worst of the crisis is over, brightening the future for buy-outs after two years of gridlock.

Private equity has up to $1 trillion of potential spending power — the so-called “dry powder” — but after a difficult year firms will be cautious when making investments, Reuters journalists at the Reuters Restructuring summit were told.

    • About Tom

      "Financial journalist with a strong interest in debt. Have worked in bonds, loans and ratings, now the specialist restructuring correspondent for Reuters."
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