Lots of Distressed Fund Activity

Distressed Funds Are Raising a Lot of Dough

Castlelake announced that it closed - in a swift four-month fundraising push - its latest fund at $2.4b. The fund will focus on global aviation and distressed assets in North America and Europe. Glendon Capital is targeting a $2b distressed debt fund. Elsewhere in distressed, there ain't much to do other thantout your own successful 2016 a la RBC Global Asset Management's PH&N Absolute Return Fund (quite a mouthful). And, in the case of Katy Industries, where Victory Park Capital Advisors LLC and Highview Capital LLC credit bid their "secured debt" to take ownership of the company, the official committee of unsecured creditors is looking to extort...uh...unwind the transaction on the basis that the secured debt is better characterized as an equity investment. If that's the case, the credit bid would presumably be invalid and the funds would need to cough up actual cash value for the assets. Hard to know for sure given the redacted pleadings. Bankruptcy is all about transparency except for those instances where it is all about anything other than transparency. Speaking of transparency, here are the funds holding COFINA bonds in the Puerto Rico matter.