Lehman Bankruptcy Causing Problems for PE-Backed Sixth Gear

Sixth Gear Solutions Corp., an independent auto finance company for U.S. car dealerships, said in a court filing that it may be forced to shut down due to the bankruptcy of Lehman Brothers, which underwrites most of its business. It is asking the court to either compel Lehman to continue funding the company, or to cancel the contract. Sixth Gear was formed earlier this year with $250 million in equity commitments led by Warburg Pincus, and $750 million in long-term debt facilities led by Lehman. www.sixthgear.com