February PE Bankruptcies: Is the Worst Over?
In February 2010, just three PE-backed companies filed for Chapter 11 bankruptcy protection, a decrease from last year and a stark contrast to the country’s rise in general corporate bankruptcies. By this time last year, 18 LBO-backed companies had filed for bankruptcy. But 2010 is on track to be a happier year for private equity portfolio companies: Combined with January’s total of two filings, buyout firms only received five black eyes to date. The survivors have flexible lenders to thank. Even more surprising is the continued rise in corporate bankruptcies across the board. Data from yesterday shows that bankruptcies rose last month for the fifth straight February. The total number of filings was 6,557, according to AACER, a database of bankruptcy statistics. The fact that private equity had its hands
