BDC Credit News: June 2, 2020Premium Free
Performing Company News
BlackHawk Mining Sold (SLRC)
The deal is AlixPartners’ first inorganic move since acquiring the US operations of Zolfo Cooper, years after it also absorbed the European team of the financial advisory and restructuring consultancy. The addition of Matrix Economics adds a team of around ten professionals to its American ranks, including founder and partner Tasneem Chipty and principals Ryan Booth and Hiu Man Chan, and boosts AlixPartners’ capabilities in competition economics.
Underperforming Company News
Pace Industries: Exits Chapter 11 – BDC Reporter
Six weeks after the BDC Credit Reporter wrote about Pace Industries, the company exits, but with a very different balance sheet.
BDC Credit Review
We reviewed 45 company portfolio in portfolio and identified 10 underperformers with a FMV of $103.9mn, equal to 18.8% of investment assets. These include 4 underperformers, with an FMV of 3.3% of the total, up from 3 in the prior quarter.
“Automakers could lose up to 12% of their annual U.S. vehicle sales in 2020 as car rental companies slammed by the coronavirus pandemic slash fleets and restructure, according to Jefferies”.
Already a Member? Log In
“The U.S. economy could take the better part of a decade to fully recover from the coronavirus pandemic and related shutdowns, a U.S. budget agency said, as a series of surveys pointed to continuing weakness in global manufacturing. The Congressional Budget Office, a nonpartisan legislative agency, said the sharp contraction triggered by the coronavirus caused it to mark down its 2020-30 forecast for U.S. economic output by a cumulative $7.9 trillion, or 3% of gross domestic product, relative to its January projections. GDP isn’t expected to catch up to the previously forecast level until the fourth quarter of 2029, the CBO added…While the economy is expected to resume growing after this year, the pace of growth likely won’t be fast enough to quickly make up for the ground lost during the coronavirus pandemic. The difference between the CBO’s latest projection for GDP and its January forecast “roughly disappears by 2030,” adjusted for inflation.”.
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.