SCP’s Perkins on Middle-Market Workouts: State of Distressed Debt

Building relationships is fundamental to turning around middle-market companies, according to SierraConstellation Partners (SCP) Founder and CEO Lawrence Perkins, as employees are “in the center of the bullseye [and] doing the work every day, taking the calls from the vendors, taking the calls from the analyst, the private equity sponsor...the direct lender.” In his feature interview with Bloomberg Intelligence analysts Noel Hebert and Phil Brendel (7:36), Perkins shares he’s encountering more “distressed by accident” lenders these days, courtesy of the private credit boom, than the “distressed on purpose” ilk. He delves into the differences between Chapter 11, Article 9 sales, and Assignment for the Benefit of Creditors (“ABC”). Prior to that, Hebert and Brendel open up with thoughts on April’s market whiplash. The podcast concludes with BI’s Negisa Balluku joining them for a roundtable discussion on Hertz, J&J, Ardagh, Franchise Group, Yellow Corp and Telesat (67:28). Links mentioned in the podcast: https://www.distressedinvestingconference.com/media-night.html