Underperforming Company News

APC Automotive Technologies: Files Chapter 11 (BDC Credit Reporter)

 The second BDC-portfolio company to file for bankruptcy protection in June is doing so as part of a pre-agreed plan with many of its creditors. Impacted are Cion Investment and Crescent Capital (CCAP), invested in debt and equity respectively. (Cion, CCAP)

Neiman Marcus Denies Breaching Terms Of Deutsche Bank Loan-WSJ

 We are following the dispute between the retailer and Deutsche Bank because – we believe – TPG Specialty (TSLS) still has $72mn of asset-based exposure to the company. Historically, TSLX has always managed to navigate stressed companies, but there’s a first time for everything. Here we’re not sure if news is good or bad from a TSLX perspective. (TSLX)

Jurassic Quest To Debut Drive-Through Dinosaur Show (BDC Credit Reporter)

The company features life-like dinosaurs and has been impacted by Covid-19 as social distancing has made entertinment of this type difficult. This article shows the company is thinking ouytside the box – literally. Whether customers will relish a drive through dinosaur experience is hard to say but shows that companies like Jurassic Quest and others in this sector are getting – appropriately enough – creative to deal with the impact of Covid-19. This is a Capitala Finance (CPTA) portfolio company with $10.1mn invested at cost and $8.8mn at FMV and rated CCR 3. (CPTA)

Seadrill: May File Chapter 11 (BDC Credit Reporter)

Shocker ! An energy company in trouble. There’s only one BDC at risk in what was intended as a “safe” senior loan in this sector when booked two years ago but now looks like an almost complete write-off is coming for Barings BDC (BBDC).

BarFly Ventures LLC: Files Chapter 11  (BDC Credit Reporter)

Already on non accrual as of IQ 2020, BarfLy Ventures files for bankruptcy. Not much recovery is likely for the two BDCs involved. (MAIN,HMS Income)

Economy News

U.S. Services Index Shows Biggest Part of Economy Stirring– Bloomberg

“The Institute for Supply Management said Wednesday that its non-manufacturing index rose 3.6 points to 45.4. While the monthly increase was the largest in more than two years, the gauge remained below the 50 mark that shows most service-related industries continued to contract. The purchasing managers group’s gauge of business activity, which parallels the ISM’s factory production index, jumped 15 points, the most in records dating back to 1997, to a still-tepid 41….A Labor Department report on Friday is projected to show another 8 million decline in May payrolls after an unprecedented 20.5 million slump in April. The unemployment rate is forecast to soar to nearly 20%”.

U.S. Factory Orders Extend Their Decline In April – Reuters