Episodes
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Zombie companies are businesses that, despite being insolvent, manage to survive for extended periods. Traditionally, these companies are defined by their inability to cover interest payments, but a more refined definition points to companies with low Z-scores, indicating a high probability of default. Over the past three decades, the prevalence of zombie companies has surged, especially in the US, leading to concerns about their broader impact on the economy.
The growing number of zombie companies contributes to the misallocation of resources, disinflation, and reduced productivity. Although zombie companies are inefficient, they continue operating for years due to financial and structural support.
In this episode of Cloud 9fin, distressed debt reporter Max Reyes sits down with Dr. Edward Altman, professor emeritus at the NYU Stern School of Business and famous for developing the Altman Z-Score, to talk about what defines zombie companies, their prevalence and the negative effects they have on the economy.
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All eyes are on media giant Paramount Global and its $13bn debt stack, amid the threat of a downgrade to junk status. With streaming wars intensifying and cable subscribers slowly converting to Paramount Plus, many are left asking: Is Paramount’s debt heading for a rocky road, or is there still a way back to stability?
Despite its challenges, Paramount holds a strong liquidity position with $2.3 billion in cash and $3.5 billion in undrawn revolver capacity. However, with debt maturing soon and uncertainty surrounding the Skydance acquisition, the stakes are high as Paramount works to balance leverage and boost cash flow amid a shifting media landscape.
For this week's episode of Cloud 9fin, senior reporter William Hoffman and credit analyst Dan Stone explore the drama unfolding at Paramount, the implications of its potential downgrade, and whether other media giants like Warner Bros. Discovery could be next in line.
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Private credit funds are venturing back to their roots, embracing a strategy that blends the old with the new as hybrid deals are back in vogue.
But is this a nostalgic trip down memory lane, or a calculated move with long-term implications?
In this episode of Cloud 9fin, leveraged finance reporter Ryan Daniel and senior private credit reporter Synne Johnsson discuss this trend, the driving forces behind this shift and ponder the future of private credit in this evolving market.
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Hedge funds are making a bold push into the private credit arena, lured by the promise of higher returns. However, new territory is not without its hurdles, as these funds navigate a landscape already populated by established players.
In this episode of Cloud 9fin private credit reporter Peter Benson and senior private credit reporter Shubham Saharan discuss the complexities of this market shift and the different strategies hedge funds are using to gain a foothold in private credit.
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Private credit fundraising has been going through an inflection point in recent years, as high interest rates and geopolitical risk increasingly drive LPs to only the most established fund managers. The market shift has many wondering, is the sector leaving its “Golden Age” and entering its "Silver Fox era”?
Despite these challenges, investors are finding new opportunities as they adapt to the changing landscape.
For this week's episode of Cloud 9fin, private credit reporters Peter Benson and Fin Strathern discuss the evolving world of private credit fundraising, the rise of more niche strategies, and the use of perpetual capital vehicles.
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The Supreme Court in a 5-4 decision on 27 June ruled that a bankruptcy court does not have the statutory authority to provide non-consensual third party releases. Such releases had been a crucial part of the Purdue Pharma Chapter 11 plan, among others, where the bankruptcy system was being employed to shield non-debtors from litigation without full creditor consent.
The decision coincided with the timely publication of Unjust Debts by UNC law professor Melissa Jacoby, which provides a critical history of how the use of Chapter 11 has expanded far beyond the initial scope laid out in the Bankruptcy Code enacted in 1978.
For this week's episode of Cloud 9fin, global head of distressed and restructuring Max Frumes discusses this refreshing and crucial snapshot of bankruptcy law that is both technical and accessible with Professor Jacoby, and how current events might further shape the bankruptcy courts around the country.
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Not all liability management deals are "violent"; in fact the majority of deals in 2024 have allowed for participation by non ad hoc group lenders who in the past had been entirely cut out of the economics of non pro rata priming transactions.
For this week's episode of Cloud 9fin, global head of distressed and restructuring Max Frumes, distressed legal analyst Jane Komsky, and private credit reporter Sami Vukelj walk through the world of liability management.
The discussion covers the benefits and limitations of this kinder, gentler LME trend, with a focus on the Pluralsight and AMC Entertainment transactions.
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US leveraged buyout volumes are slowly starting to improve, with the likes of Apollo, Thoma Bravo, CD&R and TowerBrook making moves. This comes after a long period where buyers and sellers struggled to find common ground in valuations and could bring a welcome shot of new debt issuance for investors that are eager to lend. So what changed? And is this improvement in deal activity significant enough to satisfy investor demand for paper?
In this week’s episode of Cloud 9fin — recorded before the recent spike in market volatility — US LevFin editor David Bell sits down with senior reporter Sasha Padbidri and credit analyst Alec Keblish to unpack the hottest themes of recent LBO activity.
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The credit markets are constantly evolving, and CLOs are no exception. As hopeful new managers enter, less successful platforms fall away. This keeps the market healthy, says Napier Park’s global head of the CLO management platform Serhan Secmen. But what makes a manager successful?
In this week’s episode of Cloud 9fin, Serhan joins our own global head of CLOs, Tanvi Gupta, for a granular look at mezzanine and equity tranches, how to evaluate CLO positions and how shopping for CLOs can be a lot like buying a new car.
Follow all of Tanvi’s coverage of the CLO market here on the 9fin dashboard.
Have any feedback for us? Send us a note at [email protected].
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Tumultuous waves have long beset Thames Water, but last week a massive one hit the imperiled UK utility company head on as Moody's cut its opco debt to junk.
With too much debt, poor quality assets from decades of under investment, and a plan the water regulator rejected, Thames's opco downgrade was widely expected across the market. But what happens next?
To answer that question, 9fin editor Dan Alderson, senior distressed reporter Will Macadam and ABS editor Owen Sanderson hit the studio just after the downgrade was announced. The resulting bonus episode of Cloud 9fin is packed with insights and constructive speculation about what Thames's fallen angel status, license challenges and a new UK government entail for the uncharted waters ahead.
Find all of our coverage of Thames Water here on the 9fin dashboard. Have any feedback for us? Send us a note at [email protected].
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For the vendors and firms owed money by a bankrupt company, the primary motivation to join an Unsecured Creditors’ Committee is often simple: maximize economic recoveries. But Doctor Dennis Deruelle had other priorities.
Listen as Dennis recounts the struggles faced by hospital staff and patients from his viewpoint as the Executive Medical Director for Hospital Medicine and Critical Care during the rapid shuttering of American Physician Partners.
In this interview with 9fin deputy distressed debt editor Rachel Butt, Dennis lays out the concerns he had during the process and why he joined the UCC as part of the company's bankruptcy proceedings. He shares what his experience was like as the only true clinician on the committee, and what he thinks healthcare vendors and the credit industry can learn from the APP process. -
In the realm of private credit, thinking local is a must. Which means knowing your place can determine whether an investment will succeed or generate losses.
For this week's episode of Cloud 9fin, senior reporter Bianca Boorer sits down with Hayfin's Carlos Pla. They talk about the nuance of private credit special situations in Europe, how it differs from the US market and what it takes to succeed in the various European jurisdictions.
Carlos is a portfolio manager for Hayfin's special opportunities strategy and chairman of the investment committee for the special opportunities, tactical credit, healthcare and private equity solutions strategies.
Find all of our coverage of Hayfin's latest market moves here on the 9fin dashboard.Got any feedback for us? Send us an email at [email protected].
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Shout if you’ve heard this one before: a CPA and an MD walk into a bar. The MD says, “Plz Fix,” and the CPA says, “sure, but I’ll need three forms of ID and an engagement letter first.” In response to which the MD, of course, literally explodes.
Not heard it? Well you may soon, because private equity ownership of auditing firms is causing concern in the wake of deals like the New Mountain Capital acquisition of Grant Thornton earlier this year.
In this week’s episode of Cloud 9fin, our LevFin editor David Bell and senior reporter Sasha Padbidri look into this rising trend and how it’s being received by the debt market.
Then, Sasha speaks to Dr Steven Mintz, a professor of accounting at California Polytechnic State University, author of two books and a popular blog Ethics Sage. They talk about how the entrance of PE into the audit business is sparking concerns both new and familiar. -
Overheard in the Southern District of Texas: Don’t be a meanie! Ok, we may be paraphrasing here a bit, but taking the decision in Robertshaw and the anticipated Incora decision together, the court may be signaling that lenders need to stop being so Incora-gible and tone down the violence.
In this week’s episode of Cloud 9fin, reporter Max Reyes digs into these decisions with legal analysts Jane Komsky and Cat Corey, looking at how they contrast with one another and prior case law in the district.
Find our reporting on the Robertshaw decision here and follow this thread to stay up to date on the latest with Incora here at 9fin.com.
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When it emerged from bankruptcy in 2021, Hertz was something of a success story. Everyone involved who wasn’t named Carl Icahn made out OK. But here it is again, challenged by an overstep into EVs and loaded up with pricey new debt.
In this week’s episode of Cloud 9fin, global head of distressed and restructuring Max Frumes breaks it all down with distressed credit analyst Larry Feldman and senior reporter Sasha Padbidri. How did Hertz get back into trouble? How grim is the path ahead? How will the situation play out as the 2026 maturity wall draws near?Follow all the latest up-to-the-minute Hertz coverage here at 9fin.com.
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Last week at the Fed, nothing happened. Usually when nothing happens, we don’t report on it, but in this case it got us thinking. What are the consequences of higher-for-longer? Did the Open Markets Committee leave themselves a trapdoor to push through a series of rate cuts across the back half of the year? And what’s up with rates in Europe and the UK?
In this week’s episode of Cloud 9fin, editor Dan Alderson and distressed debt reporter Will Macadam delve into all of this and more. For more content on monetary policy and its effects on the credit markets, read a piece that Will co-authored here.
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Lawyers might finally be done filing large, complex Chapter 11s in the Eastern District of Virginia.
In this week’s episode of Cloud 9fin, our very own global head of distressed and restructuring Max Frumes digs into the shocking denial of Vinson & Elkins’ retention application in the Enviva proceedings with distressed legal analyst Jane Komsky.
Read Jane’s full write-up for more on why she thinks the decision sets a bad precedent here. And watch 9fin.com this Friday, June 14, for full coverage of Vinson & Elkins’ motion to reconsider its retention as debtors’ counsel in the Enviva bankruptcy. -
In recent years, the term ‘lender-on-lender violence’ has become a popular way to refer to deals that are more politely known as ‘liability management exercises’.
Both terms are euphemistic — so what are we actually talking about here? And what happens when these often quite bruising battles between companies, their sponsors and their lenders, take place in the (supposedly) quieter and more genteel world of private credit?
For this week’s episode of Cloud 9fin, our host Will Caiger-Smith hits up Damian Ridealgh and H.T. Flanagan of Freshfields to figure out how liability management became all the rage, and how lenders are trying to protect themselves against it.
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At what point does a trend become a megatrend?
In this week’s episode of Cloud 9fin, our very own ABS editor Owen Sanderson is joined by Matthew Moniot, co-head of credit risk sharing at Man Group, in a conversation about Significant Risk Transfers (SRTs) and their potential to reshape the US credit markets.Have any questions or feedback for us? We’d love to hear from you at [email protected].
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It’s happening! Voters in the UK will head to the polls in just over a month, and most polls forecast a resounding victory for Keir Starmer and the Labour Party. Notwithstanding multiple reshuffles under the Conservatives over recent years, this would be the first proper regime change in the UK since 2010.
So it’s kind of a big deal — and while the odds of a Tory defeat are so strong that some of the impact is already priced in, there are still some important implications for the credit markets.
For this week’s episode of the podcast, our host Will Caiger-Smith sits down with 9fin leveraged finance reporter Ryan Daniel to discuss the implications of the election for the markets we cover.
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