We re-publish an article from the BDC Credit Reporter about the bankruptcy of a BDC-financed retailer. However, our principal purpose is to bring readers attention to a trend developing in BDC investing that could have major consequences for years to come, and which could accelerate in the current environment.
Yet another development at a troubled BDC-financed company that the BDC Reporter has been writing about for a year now. Given that four BDCS – including three public players – have sizeable exposure, we have chosen to republish an article from the BDC Credit Reporter, and provide a preamble explaining why this is a company worth following the progress of.
Two weeks into February and there are 4 new loans in default amongst some of the largest non-investment grade leveraged borrowers, according to S&P Global Market Intelligence. We review which BDCs are involved; to what degree and what this tells us about the private credit industry.
A long troubled retailer – whose debt is held by four different BDCs – moves closer to a restructuring or bankruptcy. We review the credit history and look forward to the possible impact on the BDC lenders involved.
A publicly-traded portfolio company which four BDCs have exposure to falls out with its lenders after months of forbearance. We discuss the possible implications for the company itself and its BDC lenders, which include several well known names.
Once again, the BDC Reporter summarizes some of the key developments lifted from the BDC Credit Reporter.
Here are some of the latest developments amongst under-performing BDC companies since our last report filed April 22, 2019
A well known retailer decides to liquidate. Three BDCs will be taking further credit hits as a result and major realized losses when the process is completed.
A portfolio company of 4 BDCs files for Chapter 11 and we consider the implications.
BDC Exposure: $137mn
BDC exposure: $137mn.
Mood Media has completed its Chapter 15 Canadian restructuring and made the move to a U.S. jurisdiction. Financial challenges remain unchanged.
BDC Exposure: $32.7mn
A restaurant operator to open new location. Good news for 2 BDCs with $8.9mn in exposure on Watch List.
Worried about new Watch List company Mood Media.
