"Bankruptcies, Defaults May Be Slowing Down"
The Distressed Debt Report | Nov 9, 2010
Article explains reasons for the slowdown and why it may be short-lived.
“Retail’s success weighs heavily on performance around Christmas season. Retail can improve sales performance significantly in a matter of days. You might see an uptick in Chapter 11 filings if the Christmas season doesn’t go well.”
Ronald R. Sussman, Cooley LLP, New York City Chapter
“We’re not seeing a lot of defaults because companies are accessing the high-yield market to refinance. That’s where distressed debt goes. Banks are still using amend-and-extend on maturities, and banks are saying their customers had a better second quarter. It’s not as though the economy has improved that much, but it’s been better.”
Lisa M. Poulin, CTP, CRG Partners Group LLC, quoted as TMA president
“Anyone under distress is undervalued. Prices are being pushed down. I don’t believe institutional lenders are forcing defaults when it’s not absolutely necessary. What’s happening with public companies is those who are in better shape can access the high-yield market and are getting additional debt.”
Thomas M. Kim, CTP, r2 advisors llc, Rocky Mountain Chapter
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