Main Street is not deterred by the bankruptcy filing of one of its restaurant companies. Indeed, the BDC – and sister fund HMS Income – are doubling down and – with an equity partner – acquiring the assets of the bankrupt business.
Nominally, this is a re-published BDC Credit Reporter about a drop in the value of bankrupt portfolio company Bluestem Brands, in which three public BDCs are involved. It’s actually an opportunity for the BDC Reporter to discuss a worrisome trend: a decline in recoveries on troubled investments. The implications for the BDC sector could run into the billions of dollars.
We re-publish a BDC Credit Reporter about yet another BDC portfolio company bankruptcy. First, though, we pen a bromide about the “fair market” valuation system and how investors can be misled by the methodology employed.
A compendium of BDC-related credit developments for June 3, 2020. Two more BDC-financed companies file for bankruptcy protection this month, bringing total to 3.
The BDC Reporter re-publishes five new articles written by the BDC Credit Reporter just in the last two days about BDC portfolio companies on or just added to the Underperformers list.
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
