LBO-Backed Bankruptcy List: 24 Total, No Mega-Busts in Q1
Last year, there were 49 total. This year, we've got half of that in the first quarter alone. And despite a few hints that the economy is waking up, there is no shortage of companies teetering on the verge of bankruptcy. Download the spreadsheet below. The main thing that might slow the growth of this list is the companies' abilities to do distressed debt exchanges, which has kept the likes of Realogy, TPG and plenty others afloat. The other crutch is covenant lite. Judging by liabilities, original deal values, and even the names of the sponsors, we have yet to see a true mega-buyout fall as yet. And we likely won't until 2012 or 2013, thanks to generous lending terms like covenant lite and PIK toggles. By then, the hope is that the credit markets will be warm enough to refinance.
