NEW YORK, July 29 (Reuters) - Three former JPMorgan Chase & Co (JPM.N) bankers have launched a restructuring firm, CoveView Advisors, to help troubled companies as bankruptcies soar amid the global recession.
The trio, with more than 20 years experience each, said that CoveView will advise distressed companies in a smaller, more focused setting than a bank where restructuring services are a minor business. CoveView also plans to advise creditor groups.
The Stamford, Connecticut-based firm’s three managing partners are joined by six senior professionals. The group has experience across complex finance, private equity, principal investing and restructuring.
“We all have restructuring experience but we have all come at it from a slightly different perspective,” said Douglas Traver, a managing partner who was most recently co-head of JPMorgan’s syndicated and leveraged finance group.
CoveView plans to limit its project load to focus closely on each situation, the managing partners explained in an interview on Wednesday.
The other two managing partners are Daniel Tredwell, who left JPMorgan 10 years ago to found leveraged buyout firm Heartland Industrial Partners, and Thomas Canning, previously a managing director in the restructuring group at JPMorgan.
CoveView joins a growing trend of start-up advisory groups launching restructuring businesses as the global recession takes a toll on U.S. companies’ balance sheets and earnings.
Bankruptcy and restructuring activity has soared in the first half of 2009. Information exchange company IntraLinks said on Monday it saw overall bankruptcy and restructuring activity increase 329 percent in the first half of 2009 compared to the same period a year earlier.
Reporting by Elinor Comlay; Editing by Richard Chang