Restructuring is the new imperative for many that operate in the private equity markets. Many portfolio companies were purchased with extreme leverage (particularly the 2006 and 2007 deals) and have severe liquidity concerns. With shrinking cash flow, limited exit opportunities and scarce availability of leverage, many managers are forced to consider how and when to restructure portfolio investments. A continued depressed economy or slow recovery may force additional restructurings.
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Reprinted with permission from Financier Worldwide Magazine.