Cloud 9fin

Altice France’s restructuring negotiations has been one of the hottest talks of the distress town since last year. With the company now preparing to enter into accelerated safeguard proceedings, we went through what happened so far in our inaugural episode of Distressed Diaries — a brand new 9fin podcast series focused on distressed debt in Europe.Senior distressed reporter Bianca Boorer, host of the series, travelled to Paris to meet with key advisors involved in the negotiations. She sits down with Saam Golshani, partner at White & Case who acted for Altice France and its shareholders, Jean-Pierre Farges, restructuring partner and head of Gibson Dunn’s restructuring practice in Europe who represented the ad hoc group of secured creditors, and restructuring partners Lionel Spizzichino and Batiste Saint-Guily from Wilkie who represented a group of predominantly unsecured creditors.In the podcast, we take a look at Altice France’s journey from March 2024 with the earnings call in March 2024 where management caused panic in the market announcing its intention to do discounted transactions to bring leverage down, to creditors forming the first co-op of this size in Europe and finally coming to an agreement in February this year.We also discuss what the deal means for the restructuring market — will LMEs continue to crop up in Europe or will directors duties put people off risking putting the company at risk? Tune in to find out.Have any feedback for us? Send us a note at podcast@9fin.com.

Jonathan Barzideh, co-head of opportunistic credit at Canyon Partners, specializes in distressed debt and structured credit. He discusses how economic uncertainty and U.S. tariff policies shape investment strategies. The conversation highlights innovative solutions in over-leveraged markets and reveals the adaptability of opportunistic credit in various sectors. Barzideh also explores how the structured credit market presents unique opportunities and emphasizes the importance of understanding company fundamentals in credit management.

Ron Daniel, co-founder and CEO of Liquidity Group, highlights the intricacies of venture debt and tech lending. He delves into how these differ from traditional private credit, particularly in supporting companies with negative EBITDA. The conversation also navigates the complexities of loan agreements, stressing the need for clear covenants and effective risk indicators. Daniel discusses the impact of economic cycles on lending strategies and predicts a promising future for tech lending driven by innovation.

Generally speaking, lenders don’t lend money to companies with the intention of ending up as equity owners. But things don’t always go to plan. And anyone who’s been there can tell you that the hard truth for certain companies is that no plan could have ever saved it — or as Jon Weber would say: “If the baby’s ugly, the baby’s ugly.”In this week’s episode of Cloud 9fin, senior private credit reporter Shubham Saharan sits down with Jon Weber and Gisele Everett of restructuring advisory Jon F Weber & Co, to talk about some of the hard truths they confront in their work. Among them, is how to avoid “tissue rejection,” to borrow a term from the medical field, which can occur when integrating new owners into an existing company.They also discuss a recent article that Jon and Gisele co-authored in the Journal of Corporate Renewal.Have any feedback for us? Send us a note at podcast@9fin.com.

Sheel Patel, a partner and head of New York private credit at Mayer Brown, dives into the current landscape of private credit amidst fluctuating US tariff policies. He discusses how these changes lead to more borrower-friendly credit terms and the evolving dynamics between lenders and sponsors. Patel emphasizes the importance of Payment-in-Kind flexibility for direct lenders and outlines strategies to navigate risks associated with distressed portfolio companies. His insights shed light on adapting lending practices in a volatile market.

In this insightful discussion, Matt Maxwell, Head of US Loans at Carlyle, and Lauren Basmadjian, Global Head of Liquid Credit at Carlyle, share their expertise in navigating the complexities of tariff-induced market volatility. They explore how CLO managers can capitalize on dislocation opportunities and sector-specific risks. Insights on picking the right assets amidst LME risk, as well as strategies for mitigating vulnerabilities in retail and auto sectors, offer a fresh perspective on turning turbulence into opportunity.

Dan Kamensky, founder of the Creditor Rights Coalition and NYU professor, dives into the intricacies of creditor rights in liability management. He emphasizes the need for fair treatment among creditors and discusses the perils of overreach in financial agreements. The conversation highlights the crucial role of no action clauses and their impact on minority lenders. Kamensky also sheds light on the evolution of market norms and the balance of power in restructuring, advocating for transparency and stability in financial markets.

Bill Sacher, a Partner and the head of private credit at Adams Street, delves into the fascinating world of private credit investing focused on the core middle market. He discusses the appeal of smaller companies with sub-$50 million EBITDA, where covenant structures remain robust. As larger managers compete for deals, Sacher highlights the optimism around recovering deal flow despite challenges like inflation and geopolitical risks. The conversation also touches on the pressures of pricing in this dynamic landscape and the resurgence of fundraising efforts amidst evolving investor demands.

Emmet McNally, a European senior distressed credit analyst at 9fin, shares insights on the tumultuous past of Ardagh's metal packaging carve-out in 2021. He and Max Frumes discuss its implications for creditor negotiations and the ensuing lawsuits over alleged value extraction. The duo delves into the complex dynamics between the company and its unsecured bondholders, exploring how to bridge the gap between competing proposals. Listeners get a peek into the intricate world of finance, navigating litigation and restructuring challenges in Ardagh's ambitious journey.

No one likes that feeling of being a little too thick in the middle. But finding the right balance of strength and cushion is no easy task. We’re talking about the middle office here, of course.The middle office may not always be in the spotlight, but when loan data goes awry it’s the team that keeps the gears turning and numbers in check. In this episode, head of podcasts Chase Collum chats with Jared Vest, global co-head of middle office solutions at FIS, to break down the middle office's essential roles, risks, and evolving responsibilities. They explore how accurate data and strong operational support are critical to navigate today’s fast-paced loan market.This episode was produced in partnership with FIS as part of a three-part series diving into the challenges facing middle office practitioners and users of global loan data sets.Have any feedback for us? Send us a note at podcast@9fin.com.