Cloud 9fin

By nature, private credit is opaque. At least for now. But 9fin’s private credit team is hard at work building a data set that will help shed light on the trends and movements in the direct lending space.

In this bonus episode of Cloud 9fin, private credit editor David Brooke invites private credit analyst Elijah Jackson to share his experience in building the inaugural 9fin private credit report.

To learn more about our private credit data platform and how to access Elijah’s report, email [email protected]. And as always, if you have any feedback on this episode or any other, send us a note at [email protected]. Thanks for listening.

Cooperation agreements have taken the LME world by storm, foiling distressed companies' plans to play creditors off of one another to secure a better deal. But are these agreements anti-competitive?

In this week's episode of Cloud 9fin, our global head of distressed and restructuring Max Frumes delves into this quandary with distressed legal analyst Jane Komsky. They compare the use of co-op agreements to a US Supreme Court case that pitted an apparel supplier against the NFL, and look into whether co-op agreements could be considered a Sherman Act violation.

For more detail on this topic, read Jane's analysis and our follow-up Default Notice newsletter on 9fin.com. If you have any feedback for us about this episode, or requests to get involved in the podcast, email us at [email protected]. Thanks for listening.

One of the strengths of private credit is its flexibility. And who doesn’t love to PIK and choose?

In this week’s episode of Cloud 9fin, US private credit editor David Brooke asks senior reporter Shubham Saharan to add another contribution to the ever-evolving private credit glossary as they dive into the definition of synthetic PIKs. Listen in to learn about what these instruments are, how they’re being used by the industry, and whether they’re likely to become a passing trend or an emerging staple.

If you have any feedback for us, send us a note at [email protected].

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.

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.

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.

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.

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.

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.

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.