News and Events

AEG in the News

Craig Dean, Principal, was quoted in the article First Half of ''08 Fails to Set Market Straight, High Yield Report, July 7, 2008, regarding the economic outlook:

Economic problems that have become more manifest over the past quarter, like higher oil prices and commodity prices, will make themselves felt again in the next wave of corporate returns. This means the credit markets have fresh rounds of pain coming their way.

The second quarter seemed to begin with the credit crisis at its worst. The promise of recovery followed, only to have more dark clouds blot the horizon before the quarter was over. “I am pretty bearish on the credit markets and where they are,” said Craig Dean…”We're in for a pretty tough run, certainly for the next quarter, and I think until next year.”

Larry Adelman, Principal, addressed the more difficult environment for negotiating restructurings in: Debtholders Reject Consent Solicitations, High Yield Report, June 23, 2008:

…With maturities coming up and companies suffering through difficult times, the need for flexibility in capital structure will be an essential part of their refinancing and reorganizing.

Larry Adelman… said that with so many companies doing large restructurings debtholders will find themselves with new power, as tender offers and consent solicitations will be a necessary piece of the puzzle. “We're in a very tough economy right now. Options for companies that need to restructure are severely limited compared to what they were last year,” said Adelman.

Craig Dean, a Principal of AEG Partners, was recently quoted in The Economist and High Yield Report discussing newly struggling industry sectors and the new rules governing Chapter 11 of America's bankruptcy code.

“Companies that prepare and package food for grocery stores…are likely to face financial stress and find refinancing to be difficult…Food prices have already adversely affected restaurant segment, which is also being hurt by its dependency on discretionary consumer spending…Another sector affected by the downturn in consumer spending and likely to see further distress is the advertising and media sector.” “Banks Ready for March (Bankruptcy) Madness.” High Yield Report. March 17, 2008: Vol. 19, No. 11.

”As defaults rise, the new rules governing Chapter 11 of America” bankruptcy code will face their first test…One result may be that firms will try to restructure with out going into Chapter 11, or at least do much more preparation before they enter it…” Waiting for Armageddon, The Economist, March 27, 2008.