Well... Platinum Equity is not happy that the details of a sexual harassment case against it has been reported in the press. (San Diego Reader) How Bad Is CIT's Loan Portoflio? Bad, Michael Corkery writes. (Deal Journal) Is Wells Fargo Suing Itself? Technically, yes. Wall Street Folly has the details on the case of Wells Fargo vs. Wells Fargo. (WSF) Speaking of Wells Fargo: The San Francisco-based regional bank is rumored to be preparing to report second-quarter earnings well above market expectations. (dR)
UPDATE: CIT has said it will not receive a bailout from the government. The company is "evaluating alternatives." After trading on CIT was halted today, we have been on the edge of our seats waiting to hear whether the troubled lender will get a federal bailout. The debate over whether CIT is big enough to deserve a bailout or whether it's too far gone to be saved continues to rage, but rather than weigh in there, we decided to look at who will be affected by a collapse of the liquidity-starved lender. Buyouts Senior Editor Ari Nathanson and I compiled a list of buyout-backed companies which have used CIT as a lead arranger on its credit facility over the last three years, courtesy of Thomson Reuters data. We came up with 38 companies.* Of those 38, CIT provided a revolver loan to all but two. For companies that haven’t drawn down their revolver (including this week’s run, which has only added to the company’s demise), the sudden disappearance of CIT could mean the sudden disappearance of all liquidity. The interesting part is the amount of repeat business on the list. It brings new meaning to the “strong lender relationships” often touted by buyout pros. The one thing they don’t brag about is how a "strong relationship" with a failing lender could wind up being worse than no relationships!
In case anyone wondered if CCMP Capital was serious about retail investing after the firm's stalking horse bid for bankrupt Eddie Bauer, today's news reaffirms it: The firm has hired Richard Zannino, former Dow Jones CEO, Saks Fifth Avenue CFO and Liz Clairborne EVP. Zannino will be busy helping the firm identify targets as CCMP seeks to deploy the remaining 75% of its $3.4 billion fund, which closed in 2007. I spoke with Zannino and Managing Director Jonathan Lynch on CCMP's enthusiasm for distressed retail deals and why Zannino is "not a fan" of traditional media assets.
Navis Capital Partners, a Kuala Lumpur-based buyout fund, has closed on around half of the commitments it seeks for its sixth buyout fund, according to a source familiar with the situation. The firm seeks to raise between $1 billion to $1.25 billion for Navis Asia Fund VI, which follows the $1 billion Navis Asia Fund […]
(Reuters) – Buyout firms TPG Capital, EQT Partners and a consortium of The Carlyle Group and Providence Equity Partners have resubmitted their offers for a minority stake in Springer Science and Business Media, three people familiar with the matter said. Candover (CDI.L) and Cinven, owners of the German academic publisher, asked for the resubmission because […]
NEW YORK (Reuters) – Bankrupt oil company Flying J Inc has reached a preliminary deal to sell its fuel-stop business to Pilot Travel Centers LLC, in a plan that would see creditors paid back in full and set the stage for Flying J to emerge from bankruptcy, the companies said on Tuesday. Pilot, which operates […]
NEW YORK (Reuters) – Paper mill owner PaperWorks Industries, owned by private equity firm Sun Capital Partners Inc, is to take control of privately owned The Specialized Packaging Group, in a deal that expands the paper company into the packaging market. Paper and packaging companies have struggled during the global economic downturn as the sharp […]
LONDON (Reuters) – Private-equity owned Nycomed and a Japanese drugs company are in the early second round of an auction for all of Solvay’s pharmaceuticals business, a person familar with the matter said on Wednesday. Analysts reckon the Belgian chemicals and drug maker’s Solvay Pharmaceuticals unit could fetch 5 billion euros ($7 billion) or more, […]
(Reuters) Bankrupt outdoor clothing retailer Eddie Bauer Holdings Inc’s (EBHIQ.PK) two key creditors are looking to liquidate its stores and cash in on the brand in a string of licensing deals, The New York Post reported. Monarch Alternative Capital and Anchorage Advisors — a pair of New York hedge funds that together control Eddie Bauer’s […]
HONG KONG (Reuters) – China Pacific Insurance (Group) Co Ltd (601601.SS), the country’s third-largest life insurer and partly owned by the Carlyle Group, is set to relaunch its Hong Kong IPO, according to sources, after its first attempt failed last year when markets plunged. The insurer, which tried to raise around 30 billion yuan ($4.39 […]