LONDON (Reuters) – Private equity houses are having to inject more capital into the companies they own to shore up balance sheets and stave off default as increasing numbers of private equity-owned firms are showing signs of stress. Private equity groups invested heavily in highly leveraged deals in the 12 to 18 months leading up […]
FRANKFURT (Reuters) – Global private equity faces a dry spell in takeovers for at least two years due to the credit market crisis and firms will need to innovate to survive, a private equity specialist at U.S. bank Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) said on Tuesday. “We won’t get signs of a […]
We've seen the size of PE bankruptcies increase as the year toils on, with Linen's ‘N Things (purchased by Apollo for $1.3 billion) narrowly topping Mervyns (purchased by Sun Capital and Cerberus for $1.2 billion). Those could soon be outdone by KKR's C$3.2 billion purchase of Masonite International, if the company files for bankruptcy. It's not a sure bet, but is beginning to look better than even money. On Friday, the company went into default on a $42 million interest payment to its $768.9 million senior sub notes due 2015. Yesterday S&P lowered its rating to D and Moody's lowered its corporate rating two levels to Caa3. This payment miss is surprising for two reasons. ...
Arbor Investments has acquired a majority stake in Bradshaw International Inc., a Rancho Cucamonga, Calif.–based wholesale distributor and market of kitchen and cleaning products. No financial terms were disclosed. www.goodcook.com
Legends Hospitality Management LLC, a Newark, N.J.-based provider of sports business services, has been formed by The New York Yankees, the Dallas Cowboys, Goldman Sachs and CIC Partners. No financial terms were disclosed. Legends will be led by Michael Rawlings, former president of Pizza Hut.
LONDON (Reuters) – European secondary loan prices breached 70 percent of face value for the first time on Monday, reaching new record lows of 68.76 that continue to inflict pain on mark-to-market investors, according to RLPC data. The low secondary loan prices reflect heavy forced selling by stressed investors that has also weighed on the […]
WARSAW (Reuters) – Polish oil venture Petrolinvest PROL.WA is in talks with private equity funds to sell up to $250 million worth of new shares to raise cash for drilling in Kazakhstan, its chief executive was quoted as saying on Tuesday. The share issue, which may be approved by the end of this year, would […]
SHANGHAI (Reuters) – British private equity firm Actis said on Tuesday it had led a consortium investing $103 million in Ambow Education Co Ltd, a Chinese educational services provider that targets middle school students. The $103 million investment led by Actis, the latest round of private fund-raising for the Beijing-based company, came after a consortium […]
NEW YORK/DETROIT (Reuters) – General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) has detailed a plan to slash costs at Chrysler LLC but initial attempts to secure financing for the controversial merger have been rebuffed, raising new doubts about whether it can be completed without government aid. GM Chief Operating Officer Fritz Henderson and […]
NEW YORK (Reuters) – The Federal Deposit Insurance Corp may have “significant claims” against bankrupt savings and loan Washington Mutual Inc (WAMUQ.PK: Quote, Profile, Research, Stock Buzz), it said in court documents on Monday. In documents filed with the U.S. Bankruptcy Court in Delaware, the FDIC said it wanted to protect any rights it may […]