Restructuring

Crunch to sink fewer firms than earlier crises

LONDON (Reuters) - Fewer companies will fail in this credit crunch than in some previous recessions as the real economy is so far holding up better and banks are willing to help their borrowers, a restructuring expert said.

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NYU's Altman sees 50-55 percent chance of GM default

NEW YORK (Reuters) - General Motors Corp , bruised by multi-billion dollar losses, has a 50 percent to 55 percent chance of defaulting on its debt over the next five years, default expert Edward Altman told the Reuters 2008 Restructuring Summit this week.

Europe bankruptcies to surpass 1990s: Blackstone

LONDON (Reuters) - The number of European companies going bust in the next few years will surpass anything seen in the early 1990s because firms bloated by debt have minimal room to put their finances in order, Simon Davies of Blackstone Group said on Friday.

Lack of covenants seen delaying defaults

NEW YORK (Reuters) - Bankruptcy experts have been forecasting a surge in corporate loan defaults this year, but it is materializing more slowly than expected as years of easy lending offered a bevy of ways for companies to avoid typical loan requirements, experts in distressed companies said at the Reuters Restructuring Summit this week.

Cov-lite weighs on current restructuring cycle

LONDON (Reuters) - The current restructuring cycle will prove harder than in 2001-2002 because covenant-lite arrangements have robbed the market of the usual early warning signals, a senior executive at Blackstone said.

Bank crisis keeps bankruptcy pros up at night

NEW YORK (Reuters) - A wave of corporate bankruptcies will keep restructuring advisors and distressed investors busy in coming months, but even the best in the business are unnerved by the speed of the U.S. financial meltdown and its impact on ordinary citizens.

Restructuring back to balance sheet basics

LONDON (Reuters) - Future restructurings are likely to focus on addressing fundamental balance sheet and business issues in troubled companies rather than providing a quick fix, a senior Deloitte restructuring expert said.

Investors earmark billions for distressed deals

LONDON (Reuters) - Investment firms are beefing up their restructuring departments in expectation of a multi-billion-dollar wave of spending on distressed securities once the market bottoms out, a senior banker at Morgan Stanley said.

European M&A to boom as crunch bites

LONDON (Reuters) - Mergers and acquisitions to forestall potential financial problems are set to boom in Europe as companies struggle in the wake of the credit crisis, a leading restructuring expert said on Thursday.

S&P's Vazza sees "avalanche" of default

NEW YORK (Reuters) - An "avalanche" of U.S. high-yield bond defaults could hit after August next year, a scenario that is sparking more interest from distressed debt investors, Standard & Poor's Managing Director Diane Vazza told the Reuters 2008 Restructuring Summit on Wednesday.

Rating agencies part of banking crisis: investors

NEW YORK (Reuters) - The reactions of ratings agencies to sharply falling stock prices and widening credit default swaps have been one of the key problems in the past few months as short-sellers targeted financial firms, two investors who specialize in distressed assets said this week.

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