Following recent Chapter 11 filings from large coal producers Alpha Natural Resources and Walter Energy filed for bankruptcy protection, Joel Levitin, partner at law firm Partner, Cahill Gordon & Reindel LLP says companies in the sector should work to preserve liquidity to avoid the same fate.
The report, titled "Alternative Lending through the Eyes of 'Mom & Pop' Small-Business Owners," marks the latest development in a recent push to make it easier for business owners to decipher and compare rapidly-expanding online credit offers.
TICC Capital Corp. and THL Credit have announced plans to exit their holdings; both cited the diminishing valuations of their own stock, which they attributed to a growing belief among shareholders that these securities are not an appropriate investment.
In the first half of 2015, a torrid pace of deal-making in healthcare has produced a 74% year-over-year surge in M&A activity. The trend has continued into the second half, as blockbuster deals like Aetna-Humana and Cigna-Anthem continue to pile up.
The final rule, which mandates a 32% reduction in carbon emissions by 2030, will lessen the reliance on coal as an energy source. While it could be litigated, it adds to selling pressure on companies already struggling with heavy debt and low prices.
Moodys Investors Services rankings of the U.S. collateralized loan obligations shows that the market share of the top 10 declined slightly between January and July as other, slightly less large managers grew their market share.
The coal company said its term loan lenders are without merit in their efforts to block a distressed debt exchange with bond investors.
Small-business lenders and experts are beginning to debate whether the weeklong shutdown will underscore the program's bipartisan support or give its critics more ammunition to argue that it is too vulnerable to politics.
Quarterly results are still coming in, but commercial lending has exceeded expectations at several large banks just as it has in so many quarters since the financial crisis.
The Securities & Exchange Commission published a no-action letter last week clarifying that CLOs originally issued before December 2014 can be refinanced and remain exempt from risk retention rules.
Despite the high yield market's concerns over the Iranian nuclear power deal, volatility in oil and gas prices, and contagion from Greece and China, Carl Pepper Whitbeck, head of U.S. fixed-income for AXA Investment Managers, says the year will end on a high note.
Besides the Greek bailout drama this month, the stock market plunge in China and the likelihood of interest-rate increases in the U.S. have escalated concerns among credit portfolio managers on widening spreads and increasing numbers of defaults.
CLO managers are receiving a small concession from regulators that will allow them to refinance most of their issues in two years without triggering risk-retention rules, sources say.
In 2011, the company's merger with International Coal Group had it poised to be the second largest metallurgical coal producer in the U.S. Four years later, market prices have Arch's debt trading at distressed levels.
U.S. leveraged loan syndication in the first half of 2015 is down 29.1% from the same period a year ago, according to Thomson Reuters, resulting in overall declines in deal volume and fees for all the top 25 banks ranked in the semi-annual bookrunner tables.
Firm: Guggenheim Securities
In the news: Guggenheim Securities Brings On Restructuring Expert