Email us with questions or comments: nmarshi.bdcreporter@gmail.com           α

BDC Portfolio Company: Possible Chapter 11

Premium Free

Our sister company – the BDC Credit Reporter has just filed a new post about a BDC portfolio company involved in casino and lodging, which is considering a Chapter 11 filing.  Given the size of the BDC exposure ($67.3mn) at cost; and the investment income involved ($7.3mn); we are bringing the negative development to our readers attention.  There are two public BDCs involved: PennantPark Floating Rate (PFLT) and CM Finance (CMFN) as well as a non-traded fund Business Development Corporation of America (BDCA), all invested in the 2023 first lien debt, but none invulnerable in the case of a bankruptcy filing.  PFLT is just recovering from seeing 4 companies go on non-accrual in the IQ 2019. One new addition to the list would be an unwelcome development. CMFN has not yet reported second quarter results, but had one portfolio company on non accrual at  3/31/2019.

Already a Member? Log In

Register for the BDC Reporter

The BDC Reporter has been writing about the changing Business Development Company landscape for a decade. We’ve become the leading publication on the BDC industry, with several thousand readers every month. We offer a broad range of free articles like this one, brought to you by an industry veteran and professional investor with 30 years of leveraged finance experience. All you have to do is register, so we can learn a little more about you and your interests. Registration will take only a few seconds.

Sign Up