Bankruptcy 2.0 changes everything
CLO managers have been forced to take on restructuring experts and add new safeguards to loan docs. But with seniority of position upended, those moves may still not protect them

Triton closes on over EUR 1bn for third opportunistic credit fund
Triton Debt Opportunities, the opportunistic credit arm of European investment manager Triton, has raised more than EUR 1bn

LPs monitor private credit managers as PIK use rises
As the use of payment-in-kind in direct lending increases, LPs are worried that the tool is being co-opted by the wrong strategies and offered to low-quality borrowers

Distress caused by LMEs triggers headache for recovery calculators
The growth of LMEs are triggering questions about how the US leveraged loan and CLO markets should record the outcomes of restructurings with multiple outcomes

Franchise Group enters Chapter 11 with USD 750m DIP, RSA with first lien lenders
Franchise Group, a name held by 197 US BSL CLOs, filed for Chapter 11 bankruptcy over the weekend

LME threat pushes creditors to join or die ad hoc groups, co-ops
Creditors looking to survive LMEs relatively unscathed increasingly have two options: join the majority ad-hoc group or hope debtholders organize under an inclusive cooperation agreement

Competition for deals and rising rates encourage greater use of PIK clauses
Despite improving conditions in credit, the number of private credit deals paying payment-in-kind (PIK) interest is staying at high levels — but the drivers are changing

Special situations funds shift from distressed debt to flexible, all-weather capital strategies
As struggling companies turn to liability management techniques to gain the upper hand against lenders, a new bankruptcy-lite environment is forcing funds to play across the capital stack 

Don’t panic — but Pluralsight could point the way to LMEs in private credit
Although LMEs have become a fact of life for broadly syndicated lenders, the private market seemed safe — at least until Pluralsight showed up

European direct lending firms raise record funds in third quarter
European direct lending fundraising jumped up a notch last month, as year-to-date figures almost doubled in a few final closes

European distress remains muted but trouble is brewing in Industrials
European Industrials rose to be the second most distressed sector in August, according to a new report based on the Weil European Distress Index

BNP Paribas AM raises EUR 90m for private debt fund of funds
A new fund of funds from BNP Paribas AM will target European special situations by investing in 6 to 8 private debt funds 

Monarch raises USD 4.7bn for 6th credit opportunity fund
Monarch Capital Partners VI follows a “distress for control” strategy with a focus on corporate credit in North America and Europe

Defaults hit 5% YTD for US private debt-backed companies according to Fitch
The monthly default rate for North American private credit-backed companies hit 5% in August, driven by PIKs and interest deferrals

CLO managers deploy big guns in battle to get on ad hoc committees
As lender-on-lender violence increases, CLO managers are being forced to dedicate staff time to protecting their interests when a loan looks to be troubled

Direct lenders debate new protections to avoid being Pluralsight-ed
Direct lenders are starting to ask for “Pluralsight Protection” when negotiating new deals to head off a repeat of the standoff this summer

Vector launches special situations private credit fund
A San Francisco-based private equity firm has launched a new private credit special situations fund, and is aiming to raise USD 300m

iHeart secured group advisors in confidential talks with company
iHeartMedia, still an important name in the US CLO market, is back in the news, potentially impacting 482 different CLOs

Franchise Group piles on the pain for CLO managers
Retail conglomerate Franchise Group is the latest name to cause a headache for CLO managers, with a downgrade to triple C and loans trading in the 50s 

Private credit default rate rises sharply, according to new report
The second quarter of 2024 saw a further increase in the default rate for US middle market companies, according to legal firm Proskauer's latest report

Connecticut pension allocates USD 300m to Oaktree’s distressed credit fundraising
Connecticut pension system commits to Oaktree latest flagship distressed credit fund

Credit hedge funds
Credit hedge fund performance

Relative to Airbus, Boeing was long accountants but short engineers
A qualitative approach can help investors spot boards that are too focused on short-term returns

Paul Hastings hires Shearman & Sterling lawyer as partner in London
Paul Hastings has hired a new partner and restructuring and special situations attorney, the latest in a string of European restructuring hires for the firm  

Houlihan Lokey adds new credit MD
Investment bank Houlihan Lokey released news yesterday of a new managing director hired to the firm’s Financial Sponsors Group