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Distressed Securities Related News
 in chronological order

 See also: Distressed Securities Related Books, Distressed Securities Related Scholarly Papers, or Distressed Securities Home Page.

Table of Contents:
 

Alchemy's Moulton sees distressed opportunities ahead
April 25, 2006
From Reuters:
 Opportunities to buy distressed companies or their debt are opening up and will continue to do so as economies worsen amid the global credit crunch, a leading buyout executive said on Friday.

Highly indebted companies in cyclical industries such as construction, real estate and retail are likely to struggle to make interest payments, making their debt trade at a discount in the secondary market, or cutting the value of the equity.

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Distressed Deals Beyond 2008 and More to Be Covered at iiBIG's Distressed & Turnaround Investment Forum
April 22, 2006
From Marketwire:
 Following the success of the September 2007 Las Vegas, iiBIG will bring the Distressed Series East to New York City for the 2008 Distressed & Turnaround Investment Forum, May 14-15, 2008 at the Marriott Marquis.

New Opportunity Funds focusing on distressed investing are opening almost daily as asset valuations and the credit crunch are creating outstanding prospects for investors and turnaround managers. The credit crunch is no doubt having an impact on the buy-out markets, particularly at the high-end of the scale -- deals in $2 billion-and-up category. But with those larger deals becoming harder to do, even the larger funds -- and others with "dry-powder" -- are focusing on distressed investments in the middle-markets where transaction activity remains strong and lucrative deals are being done.

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BlackRock proves its credentials
March 31, 2006
From FinancialNews-US.com:
 When the New York Federal Reserve realized just over a week ago that it would need a manager to run the portfolio of mortgage-backed securities it was taking as collateral for a $30bn (€19bn) loan to Bear Stearns, US-listed asset manager BlackRock was the obvious choice.

By the admission of its rivals, BlackRock is one of fewer than half a dozen asset managers with the expertise and resources to take on such an assignment, alongside Pimco, Western Asset Managers and Goldman Sachs Asset Management.

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Citigroup hires two for distressed debt fund
March 28, 2006
From FinancialNews-US.com:
 Citigroup’s alternative investments division has hired a portfolio manager to run a new structured credit fund as the bank joins the wave of institutions seeking to capitalize on opportunities in distressed debt in the wake of battered credit markets.

Jerome Anglade, who was previously head of European credit structuring at Morgan Stanley, will join Citigroup on May 15 and will be tasked with creating the fund. Anglade will be based in London.

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R.H. Donnelley, Idearc Defaults Signaled as Media Debt Tumbles

March 20, 2006
From Bloomberg:
 Apollo Management, the American private equity group, could be forced to pump millions of pounds of cash into Countrywide, Britain's biggest chain of estate agents, in a bid to shore up its investment in the group.

Countrywide's debt is changing hands at "seriously distressed" levels, according to specialist traders who believe the company will need to call on Apollo's support to help it through the slowdown in the British housing market.

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Countrywide in a state over distressed debt
March 16, 2006
From Telegraph.co.uk:
 Apollo Management, the American private equity group, could be forced to pump millions of pounds of cash into Countrywide, Britain's biggest chain of estate agents, in a bid to shore up its investment in the group.

Countrywide's debt is changing hands at "seriously distressed" levels, according to specialist traders who believe the company will need to call on Apollo's support to help it through the slowdown in the British housing market.

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Distressed Investing Opportunities in the Middle Markets, More at iiBIG New York City Forum
March 13, 2006
From Marketwire:
 Headlines are dominated by names like "Blackstone" and "Carlyle" but the meat-and-potatoes of the distressed investing business are in the middle markets -- the focus of iiBIG's Distressed & Turnaround Investment Forum EAST, scheduled for May 14-15, 2008 in New York City.

The credit crunch is no doubt having an impact on the buy-out markets, particularly at the high-end of the scale -- deals in $2 billion-and-up category. But with those larger deals becoming harder to do, even the larger funds -- and others with "dry-powder" -- are focusing on distressed investments in the middle-markets where transaction activity remains strong and lucrative deals are being done.

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Private equity's distressed debt investment party
March 13, 2006
From BloggingBuyouts:
 According to The New York Times, everybody's doing it! Well, maybe not the birds and the bees, but certainly Blackstone (NYSE: BX), KKR, and now Apollo Management, the latter to the tune of $1 billion, are investing in distressed debt.

It's no surprise that Blackstone is ahead of the game and has already raised a $1.4 billion fund to focus on cheap loans and bonds. The Deal.com also lists Cerberus and Carlyle as being interested in joining the party.

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GLG explores move into distressed debt
February 7, 2006
From Telegraph.co.uk:
 GLG, one of London's largest hedge funds with $24bn (£12.2bn) of assets under management, is considering investing in distressed debt in order to benefit from the continuing credit crisis.

The hedge fund, run by chairman Noam Gottesman, is exploring the possibilities thrown up by the amount of such debt in the markets.

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Octavian Expands Distressed Debt Team
February 6, 2006
From FOXBusiness.com:
 Octavian Advisors, LP, a $1.1 billion alternative investment management firm specializing in international special situations, announced the appointments of Arif Gangat as Managing Director and Oscar Mockridge as Director. Both will specialize in distressed debt investments outside the United States.

"The turmoil in worldwide markets provides a perfect backdrop for Octavian's unique style of investing," said Richard Hurowitz, co-founder and Chief Executive Officer. "I have worked with both Arif and Oscar for over six years and their analytical and risk management skills will be a tremendous asset as we continue to expand our worldwide distressed investing capabilities."

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Debtwire Unveils 2008 Distressed Debt Outlook for North America
January 15, 2006
From SunHerald.com:
 Debtwire, the leading distressed debt and leveraged finance real-time news and data service, today announced the findings of its 2008 Distressed Debt Market Outlook for North America survey. The study, published in conjunction with Bingham McCutchen LLP, FTI Consulting, Inc. and Macquarie Securities (USA) Inc., highlights major issues and trends facing the North American distressed debt market in 2008 and includes the expectations of market participants.

While most traditional investors look for companies on a growth track, distressed specialists focus on the darker side of the economy. They track industries and corporations that are poised for collapse or those that have already fallen and are undervalued as a result. Nearly three-quarters of respondents said they plan to place more of their assets in distressed debt in 2008.

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Over $5 bln distressed securities being liquidated
January 8, 2006
From Reuters:
 Managers of several so-called collateralized debt obligations are liquidating over $5 billion of distressed securities from their portfolios over the next few days, market sources said on Tuesday.

One auction occurred late Monday and two other auctions are slated for later Tuesday. The auctions total $1.5 billion for the "TABS 2006-5" portfolio, which includes collateralized mortgage obligations, other CDOs and home equity ABS securities, the sources said.

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Blackstone creates distressed debt fund
December 13, 2006
From BusinessWeek:
 Blackstone Group established a $1.3 billion fund to snap up debt trading at cheap prices in the wake of this year's credit turmoil, the investment firm said Thursday.

Blackstone unveiled the launch of the Blackstone Credit Liquidity Partners L.P. fund, which will invest in bank debt, commitments to finance corporate takeovers, collateralized debt obligations and other investments skewered by the seizure in financial markets.

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Oaktree Plans EU1.25 Billion Fund for European Distressed Debt
December 7, 2006
From Bloomberg:
 Oaktree Capital Management LLC, the investment firm run by Howard Marks, plans to raise 1.25 billion euros ($1.83 billion) for a European distressed debt fund.

The pool is more than three times bigger than the $500 million the Los Angeles-based firm raised for its first European distressed debt fund last year, according to a document sent to potential investors. Oaktree plans to complete raising the money by the end of the year.

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Distressed Securities, Equity L/S Suffer In November
December 6, 2006
From FINalternatives:
 November was bad, but not as bad as it seemed from early indicators, according to Dow Jones. To be sure, five of six of the Dow Jones Hedge Fund Strategy Benchmarks were in the red last month, but none was down as much as predicted.

Distressed securities funds were the worst off, dropping 2.25% in November (but up 0.94% year-to-date), followed by equity long/short, which was down 2.04%. Still, the latter remained the top-performing strategy tracked by Dow Jones with a year-to-date return of 18.05%.

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Distressed debt players eye prospects in LBO debt
December 5, 2006
From Reuters:
 Distressed debt investors are eyeing leveraged buyout debt as one of their next big buying opportunities as financing spigots for shaky companies close, according to an investor survey published on Wednesday.

More than 85 percent of distressed debt investors and other leveraged debt players polled said they are concerned about how companies will refinance massive debt taken on for their LBOs, a survey commissioned by law firm Bracewell & Giuliani found.

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'Vultures' Circle, Warily
November 30, 2006
From The Wall Street Journal Online:
 With its purchase this week of assets from mortgage lender E*Trade Financial Corp., Citadel Investment Group seemed to signal a rising investor appetite for distressed securities and provide a possible indication that a bottom in the mortgage crisis could be nearing.

Not so fast. The "vulture" market, as it is known, is now flush with cash. By some estimates, such funds have raised more than $600 billion in recent years, much of it accumulated recently to pounce on opportunities created by mortgage-market turmoil. But many of them are keeping their powder dry.

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Distressed debt shows biggest jump in five years
November 29, 2006
From FinancialNews-US.com:
 The amount of debt trading as distressed in the US market has seen its largest monthly leap in five years which could be an indicator of increased defaults despite recent actions by central banks to stimulate credit markets.

In November, the US distress ratio rose to 4.9% from 2.3% a month ago and 2.1% a year ago, according to ratings agency Standard & Poor's.

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Centerline To Launch Distressed Fund
November 20, 2006
From InstitutionalInvestor.com:
 Centerline Capital Group is marketing a $1 billion distressed fund that will invest in commercial real estate loans, commercial mortgage-backed securities and collateralized debt obligations. "We believe there are abundant opportunities to acquire bonds and mortgages trading at depressed market values due to factors such as market illiquidity, poor collateral performance or poor asset management," Mark Schnitzer, ceo, said last week during Centerline's third-quarter earnings call. He added that there has been strong investor reaction to the proposal.

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GSC Group to buy distressed mortgage securities
November 15, 2006
From Reuters:
 GSC Group is marketing a new fund that will invest in distressed subprime residential mortgage-backed securities, a spokesman for the investment firm said on Thursday.

"We are getting ready to launch the distressed fund which will be run by our real estate group," said spokesman Carl Crocetto.

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Vultures Swoop In On Builders' Land
November 9, 2006
From TheStreet.com:
 Real estate vulture funds are scouring the U.S. for distressed housing developments and land sites being sold at cheap prices by homebuilders looking to clean up their balance sheets.

These funds, which target internal rates of return greater than 20%, are not betting on any immediate recovery in housing. Instead, they're seeing profit in buying the housing sites today --many of which are selling at 50% or greater below their peak 2005 values -- with the aim of flipping them or selling homes at the projects in two years or more.

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Expert seeks opportunity in distressed funds
November 7, 2006
From London Stock Exchange:
 The latest financial crisis in the credit market will eventually allow distressed funds to be involved in restructuring, according to Pioneer.

Reported in Reuters, Mark Baker, co-chief investment officer of funds-of-hedge-funds at Pioneer, commented that he has a "high weighting" of his portfolios in distressed hedge funds.

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Onex Establishes New Distressed Debt Platform
November 2, 2006
From Earthtimes.org:
 Onex Corporation (TSX: OCX) announced today that it has established Onex Credit Partners, a credit-investing platform focused on generating attractive risk adjusted returns through the purchase of undervalued credit securities. This initiative underscores Onex' commitment to grow its alternative asset management business through a focus on strategies that can benefit from Onex' broad industry expertise and value oriented investing philosophy.

Onex Credit Partners will be led by Michael Gelblat and Stuart Kovensky, seasoned credit investing professionals and co-founders of GK Capital. Prior to founding GK Capital in 2005, Mr. Gelblat and Mr. Kovensky were co-managers of the Levco Debt Opportunity Fund. Together they have established an outstanding track record, experiencing only eight down months since inception in July 2001 and consistently outperforming benchmark indices. Onex has acquired a 50% interest in GK Capital, which has approximately $300 million of assets under management and has been renamed Onex Credit Partners. The firm will retain the entire GK Capital team. Additionally, Onex has committed $50 million to be invested in Onex Credit Partners' strategies.

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New Jersey Jumps On Distressed-Credit Bandwagon
October 29, 2006
From FINalternatives:
 New Jersey’s State Investment Council last week voted to commit a total of $350 million to two hedge funds and a private equity fund.

The Garden State is committing $125 million to the PIMCO Distressed Mortgage Fund and a $100 million to the Centerbridge Distressed Credit Partners Fund. PIMCO, which currently manages $693 billion in fixed-income assets, is raising the Distressed Mortgage Fund “to take advantage of the opportunities they see resulting from the current dislocation in the mortgage market,” according to an internal memo from William Clark, director of the division of investment. The PIMCO mortgage team is headed by Dan Ivascyn and Scott Simon, the co-portfolio managers of the Distressed Mortgage Fund. <