Entries tagged "Aleris"
Covenant-lite structures did not prevent Aleris' slide into Chapter 11. Two other aluminum companies landed in bankruptcy this year, and more are on the brink.
The good news: Private equity is sitting on billions in investor capital. The bad news: It faces masses of maturing debt, some dicey investments and great uncertainty.
The market for debtor-in-possession loans is alive, but it's expensive, picky and creditor-friendly -- yet DIPs are needed more than ever before.
Leverage -- lots of it -- can bring down businesses in this recession, with or without covenants.
