Blackstone Sees More Out-Of-Court Restructurings Over Chapter 11s
Despite the past year’s spike in corporate bankruptcies, The Blackstone Group's Timothy Coleman implied that the number has actually been kept down by companies finding new alternatives. Coleman, who is the firm’s Co-Head of Restructuring and Reorganization Advisory, said he’s seen a shift in the nature of the restructuring process over the last year. The comments were made at this morning’s Reuters Private Equity and Hedge Fund Summit in New York. “We’ve seen an increase in the number of out-of-court deals,” he said. “People realize that just going into Chapter 11 isn’t the only way to go.” Coleman cited the example of C-BASS, a New York-based residential mortgage asset issuer that retained Blackstone Group’s restructuring group in 2007. He said the firm worked out a long term restructuring plan that TKKTKs for the next 25 years. “It’s a great example of a deal that before, we would have thrown the company into Chapter 11.”
