Staring at the Sun: A Look at the Equity Checks from Sun Cap's Bankruptcies
When Big 10 Tire flipped to Chapter 11 last week, it was the fifth Sun Capital Partners portfolio company to do so in 2009. The turnaround firm's standard response to questions regarding its bankruptcies is "look at the percentages." And I would agree: Because of the size of its funds and because of the dirt-cheap prices it pays for failing companies, Sun Capital has many, many portfolio companies. Its website lists 70, to be exact. BUT: Sun has had five companies go bankrupt in 2009. Add that to the five that ended up in bankruptcy last year and you've got an even ten (eleven if you count its PIPE into Sharper Image from Sun Capital Securities). That represents 14% of the total portfolio, which is quickly approaching a high percentage.
6 April 2009•2 mins read
