MJTA Restructuring Investment Banking Group Starts Sizing Up 2013
The Restructuring Investment Banking Group of Morgan Joseph TriArtisan LLC (MJTA), even with the summer still ahead and with more than six months yet to go this year, is already starting to focus on 2013.
As detailed in the group’s latest Restructuring Quarterly Newsletter, it observes:
Among other issues covered in the newsletter, are recent financing and restructuring trends, including how the lack of private equity is spurring the credit market amidst decreasing new loan supply due to a cool first quarter M&A market.
In addition, the group is seeing an increase, though still a small percentage of cases, where equity holders remain potentially “in the money” in a Chapter 11 proceeding.
“In these cases, which are often precipitated by an unexpected event (such as judgment, fraud or earnings restatement) rather than significant overleverage, investors have at times been able to generate outsize returns investing in Chapter 11 debtors that reorganize in a manner to drive value to equity holders,” observed James D. Decker, a MJTA managing director who heads the Restructuring Group. “But when value extends to equity – in other words, equity is the fulcrum security – equity holders cannot expect to solely drive an outcome and must organize and actively engage with other classes in order to effectively drive their desired form of recovery.”
Morgan Joseph TriArtisan LLC is an investment bank engaged in providing financial advice, capital raising and private equity investing.