Toby Mitchenall
The UK buyout house has booked a €1.3bn impairment – half the value of the equity investment – on the 2007 deal. It will also return €80m of carry to investors, because according to chief executive Guy Hands, 'our investors have suffered and therefore our rewards should suffer'.
The buyout firm will walk away from Italian yacht manufacturer Ferretti, which under the current restructuring plan will remain in the control of the management team led by chief executive Norberto Ferretti.
Borrowers in cyclical sectors, such as the motor trade, chemicals and the media, are likely to have difficulty restructuring their debt, according to recent data. Recovery rates for European buyout debt are likely to hit their lowest ever.
The French firm's consolidated revenues have surpassed €4bn for the first time. Debt levels are not a concern either at portfolio or group level, the firm has said.
Almost half of the banking giant’s £10.4bn leveraged loan book comprises loans relating to the take-private of Alliance Boots and the AA Saga merger. The bank is holding the loans, rather than selling ‘into an unwilling market’.
Guy Hands this week knocked deals done between financial sponsors. Toby Mitchenall explores the issue.
Market turmoil has forced the Italian private equity firm to stop marketing its fifth fund, launched in September. The firm's Fund IV recently acquired Tiscali's international internet business.
A Germany- and Dubai-listed investment firm has capped off a torrid 2008 with a restructuring agreement that will ‘secure the company’s future’.
Last year saw $132bn worth of deals fall through and total volumes down 71% on 2007’s figures.
Most portfolios have at least one struggling business. It’s up to GPs to instigate a restructuring process before the banks have to step in, writes Toby Mitchenall.