CHICAGO (Reuters) – Kellwood Co, one of the largest U.S. apparel suppliers, could be forced to file for bankruptcy after it failed to reach an agreement with bondholders with a $140 million bond issue maturing next week, the Wall Street Journal reported. Kellwood, which was taken private in 2008 by buyout firm Sun Capital Partners […]
Harrison Street Capital has acquired a majority stake in MCR LLC, a -based provider of program management services to the federal government. In related news, MCR has bought aeronautical and technical services consulting firm Aerodyne Inc. from Abraxas Corp. No financial terms for either transaction were disclosed.
(Reuters) – Hoku Scientific Inc (HOKU.O), a supplier of raw materials to the solar industry, said it may explore the sale of the company as it struggles to raise capital for a polysilicon plant in Idaho, sending its shares down 15 percent. Last month, Hoku had said it may not be able to continue as […]
FRANKFURT (Reuters) – A financial investor group has emerged as the final candidate to buy Vattenfall’s German power grid in what would be one of the few European infrastructure deals this year, people familiar with the matter said. A group consisting of the infrastructure funds of Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and Allianz (ALVG.DE) […]
NEW YORK (Reuters) – Bankrupt autoparts maker Delphi Corp said on Friday that it had received no additional bids for the company as part of a court-mandated auction that seeks to create alternatives to a previous deal it reached with a private equity firm. Delphi, which has been trying to emerge from bankruptcy, was told […]
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from Standard & Poor’s and Moody’s Investor Services. This week saw downgrades on yet another distressed debt exchange (Duane Reade) and a post-debt exchange upgrade. Rounding it out were a handful of bankruptcy-related withdrawals. Company: Duane Reade Inc.
Sponsor: Oak Hill Capital Management
Downgrade: S&P lowered its corporate credit rating on the company to 'CC' from 'CCC+' and lowered the subordinated debt rating to 'CC' from 'CCC-'. Moody’s downgraded the company’s probability of default rating to Ca from Caa2.
Highlight: The downgrade follows Oak Hill’s announcement to launch a distressed debt exchange for the company. “We view this offer as being tantamount to default given that Duane Reade's highly leveraged capital structure that we believe may be unsustainable over the intermediate term, and the company's weak financial profile.”
LONDON (Reuters) – Lenders to German alumina company Almatis have until September to agree a restructuring deal or a sale of the company, sources close to the situation said on Friday. Almatis needs to make payments by the end of September to former owner Alcoa (AA.N) to pre-fund this year’s commitment to its feedstock supply […]
Oak Hill Capital Partners has agreed to make a $125 million preferred equity investment in Duane Reade Holdings Inc., a drug store chain that Oak Hill bought for $700 million in 2004.
Thoma Bravo has increased its buyout offer for Entrust (Nasdaq: ENTU), from $1.85 per share to $2 per share. The move increases the deal’s size from $114 million to $124 million, and Thoma Bravo would receive a $2 million termination fee if Entrust shareholders reject the offer. Entrust is a Dallas–based company that secures digital identities and information for consumers.
FRANKFURT (Reuters) – Struggling German chipmaker Infineon (IFXGn.DE), working to ease its financing needs, plans to raise 725 million euros ($1.0 billion) in a capital increase with the backing of U.S. investor Apollo. Infineon plans to launch a rights issue of up to 337 million shares with a subscription price of 2.15 euros, the company […]