Buyout Firms Unleash Divide & Conquer Tactics Against Creditors
Smaller lenders gagged by owners in high-pressure restructurings
Welcome to Going Private, I’m Sinead Cruise and this is Bloomberg’s twice-weekly newsletter about private markets and the forces moving capital away from the public eye. Today, we look at threats to Hong Kong’s lucrative listings revival, the depleted supervisory manpower at the Securities & Exchange Commission and the long-awaited arrival of guidelines governing 401 (K) investments in private markets. But first we look at the strong-arm tactics some private equity firms are using to bring smaller creditors to heel. If you’re not already on our list, sign up here. Have feedback? Email us at goingprivate@bloomberg.net
*Friday’s Going Private will land on Thursday due to the Easter holiday*
It’s rarely been tougher to be a small lender to a private-equity backed company fighting to stay afloat. Some buyout firms are turning to side deals and gagging orders to curb dissent against debt workouts that can favor some creditors over others.