Private equity, an investing trade plied by 4,500 firms with $3 trillion in assets, is bracing for a shakeout that’s been brewing since the collapse of credit markets choked off a record leveraged-buyout binge.
American Apparel Inc. , the operator of more than 280 clothing stores, plunged 41 percent in New York trading after posting a record loss and informing investors it may breach covenants on its second-lien loan.
American Safety Razor Co. , the fourth-largest maker of wet-shaving blades, filed a Chapter 11 petition yesterday where the company will be sold to first-lien lenders in exchange for debt unless second-lien creditors make arrangements to pay off the senior creditors within seven weeks.
Publisher Tribune Co. announced yesterday that mediation resulted in agreement with some creditors on a reorganization plan along the lines proposed earlier this month by creditors Oaktree Capital Management LP and Angelo Gordon & Co.
Bumble Bee Foods LLC, the maker of canned seafood products and the target of a leveraged buyout by Lion Capital LLP, plans to sell seven-year debt as high-yield corporate bond default rates may decline.
Workflow Management Inc. , a provider of promotional marketing services and printed business documents, filed a Chapter 11 petition late in the day on Sept. 29, possibly aiming to use cramdown on a holder of first- and second-lien debt who was blocking an out-of-court restructuring.
Lion Capital LLP, owner of Wagamama Ltd., may sell the Japanese fast-food chain to Duke Street Capital Ltd. for about 215 million pounds ($348 million), Sky News City Editor Mark Kleinman reported in his blog on the website.