The Deal’s Bankruptcy Insider released its year-end 2007 statistics and a top line look at its quarterly league tables in time for the Distressed Investing Conference, Jan. 24 -25 in Las Vegas, co-produced by the Turnaround Management Association and The Deal LLC The year-end market data shows activity is accelerating in debtor-in-possession lending and exit financing. Bankruptcy Insider’s data illustrates the trend that there’s more money being made available as more lenders jump into the high-margin DIP lending market with loan volume rising to $13.6 billion, up from $9.5 billion in 2006. (PDF of bankruptcy league tables available for download after the jump).
And exit financing also hit a new high at the end of 2007 with 57 deals adding up to $34.1 billion, compared with 46 deals totaling $27.1 billion one year prior.
Many bankruptcy practitioners will likely benefit in the current market cycle, but they too may face some challenges, as The Daily Deal recently reported: Exits for some reorganizing companies are creating difficulties for the banks financing the exit packages as they try to syndicate the debt, similar to what’s happening with the LBO pipeline.
The BI tables have other interesting tidbits such as the hourly fees of the the top-billing debtor counsels – at a glance you’ll clearly see that there’s an upside to a down market. - The editors
Download the PDF here:
http://www.thedeal.com/dealscape/TMA/DistresstedInvesting_BITablesHandout.pdf
