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Hedge funds surrounded over a dozen depressed France companies, as a string of economic banks pushing into increasing businesses toward painful changes.
Changing counselors and depressed debt investors say they are watching the struggles in the middle and mostly owned company, which is always owned Private equity groups.
Two portfolio companies in the EQT portfolio, Care Home Provider Colisée and Lab Operator Cerba, the arrangement of their debt or risk of doing so. Partner Group Epertation Actia and Payment Operatement of Apollo and Payment Operatement of Apollo is the other indented company owned by private justifications that require revisions, people who are familiar with cases say.
“Between 15 and 20 names are monitored. Everything comes as a real potential situations due to repair issues,” adding mostly owned businesses.
“In Paris, there is no week without a fund in the UK or US und to see us,” Olivier Sibenaer, an expert in arranging interparters. “It’s really going since the beginning of the year.”
Eceia, Inocico, Colisée, Eqt and Partners Group refused to comment. Cerba does not respond to a request for comment.
Debt difficulties are a reflection of French economic challenges. According to the Bank of France, French business banks are at the highest level because records start in 1991.
Businesses across Europe are struggling with high debt levels and a lack of money to pay the increase in interest rates when they are cleaning.
But the situation is more acute in France, where there is a high number of businesses with many debt piles like priven-19 whether many businesses are protected by French-backed loans.
The number of shed shopping – when private equity groups get companies using multiple debts – more than France than Europe. There were 4,675 LBOS in France since 2015, compared to 2,786 in Germany and 1,749 in Italy, according to the analysis of HEC professor Oliver Gottschalog.
Businesses face a “multiplication of shocks”, said Céline Domenget-Morin, a Lawyer of Paris in Weil, Gotshal. “You have experienced first (shocked) and one second and then, when the third comes, you will never bring it,” they say.
Regulatory changes implemented by 2021 also affected how the changes were playing. The France adopted by European insolvency law debilitating the hand of shareholders as compared to previous law.
The process leads to more antagonistic habitats between creditors, where some lenders can force others to repeat the deals with a process known as “cross-clamed cramdown”.
Changes provide a “tool” that makes France a more attractive location for some international credit investors, Sibenaer said.
Hedge funds invested in depressed debt, often based in the US and UK, can obtain stakes of suffering companies by changing the process.
“We refer to France,” said an investor in a European credit credit credit fund. “There’s a lot to do there,”
France has a high-profile rope recruitment situations in recent years, including Casino Casino organizations, Home Home Provider Orpea and Telecom company. Altice’s creditors are the Patrick Drahian creditors ready for another round of structure, while Casino’s debt falls at a deep level of a year after € 5bn structure it.
After these large changes for listed businesses, many companies owned by private equity groups today are more unclean.
Bloomberg data shows that some traditional high-yield credit investors drop Colisée’s debt. “It is a sad fund to be funded in the fund in transactions,” a long yield invested in the bond said.
Medical debt Cerbabo Cerba also trades in troubled levels following the aggravated performance. The secure bonds of the Cerba sell the euro, while the unsecured debt is selling about 22 cents in the euro, as the borrowers are expected.
Further reporting by alexandra carefully
