Jennifer Harris
The flurry of Refco litigation continues, as TH Lee has now filed suit against Grant Thornton, the independent auditor hired to perform due diligence on Refco before the 2004 merger agreement. The private equity firm alleges the auditor failed to notify it of suspicious transactions on Refco’s balance sheet.
Cerberus portfolio company Aegis Mortgage has filed for bankruptcy – it owes the private equity firm $178 million.
US regional airline Midwest has turned down discount airline AirTran’s buyout offer in favour of a higher, $400m bid by TPG Capital and Northwest Airlines. A formal agreement is expected in days.
American Capital has hired Joel Houck to develop a new closed-end fund, drawing on his experience in specialty finance and commercial banking.
As the credit market continues to tighten, Home Depot is working with Bain, Carlyle and Clayton Dubilier & Rice to renegotiate the agreed $10.3 billion sale of its HD Supply Division.
The JP Morgan-led group of banks that underwrote $10 billion of debt related to Cerberus’ acquisition of Chrysler has sold $6 billion of the debt at 95 percent of par.
Los Angeles-based US Renewables Group has held a final close on its second fund, which will target renewable energy opportunities. It is nearly five times the size of its predecessor.
Thomas H. Lee-led Lee Equity Partners has agreed to pay $395 million for teen fashion retailer Deb Shops. It is the firm’s second deal since it was founded last year.
As investors race to unload their subprime mortgage based assets, distressed investor Sun Capital Partners plans to buy an 80 percent stake in First NLC Financial Services, a subprime mortgage originator.
Carlyle Capital Corporation announced a reduction in the scope of its planned Euronext IPO in reaction to volatility in the subprime loan market.