(Reuters) – U.S. private equity firm Lone Star [LS.UL] has decided to scrap its plan to sell a majority stake in Korea Exchange Bank (004940.KS) worth $4 billion at the current market price due to weak demand from potential investors, a local paper said. “Lone Star told financial investors in the United States, Hong Kong [...]

(Reuters) BI-Lo LLC, a U.S. supermarket chain owned by Lone Star Funds, is up for sale and has drawn interest from strategic and financial buyers, making it the latest private equity portfolio company to go on the block, a source familiar with the matter said on Monday. U.S. supermarket chains Kroger Co and Publix Super [...]

HONG KONG/SYDNEY (Reuters) – Australia and New Zealand Banking Group Ltd (ANZ.AX) has hired Goldman Sachs JBWere and JP Morgan (JPM.N) to advise on its bid for a majority stake in Korea Exchange Bank (004940.KS), sources said on Wednesday, in what is expected to be a more than $4 billion deal. Sources told Reuters last [...]

LOS ANGELES (Reuters) – Supermarket chain BI-Lo LLC said on Thursday it expects to exit bankruptcy in May, backed by its private equity owner Lone Star Funds, after it received court confirmation for a reorganization plan. BI-Lo, which has 207 supermarkets and over 15,000 staff, filed for bankruptcy 13 months ago, just days before two [...]

In 2008 and 2009, distressed debt was the most in-demand private equity strategy for institutional investors. And it doesn’t seem to have cooled off this year, despite a recovering economy and general sluggishness within the private equity fundraising market.

Oaktree Capital Management, Centerbridge Partners, Lone Star and MHR Fund Management are just a few large distressed debt firms currently raising new funds.

There are a number of reasons these players are likely to find success. For starters, they are riding the coattails of last year’s blockbuster year for distressed debt (i.e., strong strack records). Admittedly, debt is trading around par this year — and much of the upside for distressed debt plays is behind us — but timing concerns rarely dampen LP enthusiasm.

“Aside from the limits of the market opportunity, most investors are still looking to deploy capital in that space,” said Jérémie Le Febvre, a partner with fund placement agent Triago. One reason, he explained, is that many investors remain overallocated

Lone Star Funds has completed its take-private acquisition of hotel owner and operator Lodgian Inc. (NYSE: LGN) for approximately $270 million (including assumed debt). Lodgian stockholders received $2.50 per share.

Lone Star Funds has received shareholder approval to acquire hotel owner and operator Lodgian Inc. (NYSE: LGN) for approximately $270 million (including assumed debt). Under terms of the agreement, Lodgian stockholders would receive $2.50 per share.

SEOUL (Reuters) – U.S. fund Lone Star has sent teaser letters for sale of its $4 billion controlling stake in Korea Exchange Bank (004940.KS) to potential investors at home and abroad, Maeil Business Newspaper reported on Tuesday. Lone Star sent letters to some 50 overseas investors, including banks and private equity funds, and 5-6 local [...]

SEOUL (Reuters) – U.S. private equity fund Lone Star plans to resume selling a $3.9 billion majority stake in Korea Exchange Bank (004940.KS), KEB said, in what would rank as South Korea’s biggest banking deal to date. Previous attempts by Lone Star to sell its 51 percent holding in the country’s 6th-ranked lender — to [...]

BERLIN (Reuters) – Private equity firm Lone Star Funds [LS.UL] expects to sell its majority stake in Korea Exchange Bank (004940.KS) in the next six months, Lone Star managing partner John Grayken said on Wednesday. Lone Star previously tried to sell the stake but was thwarted. British bank HSBC (HSBA.L) in 2008 dropped a $6.3 [...]