Yawn: PE-Backed Bankruptcies Not Even Moving the Radar

It seems appropriate that the last monthly bankruptcy list I compile racks up a big fat zero.

The closest thing we have is the possibility that Apollo Management’s Innkeepers USA, a real estate investment trust, might maybe possibility go bankrupt, according to the Wall Street Journal. Apollo acquired the company in 2007 for $1.5 billion; it is in the process of exploring “all possible” restructuring possibilities.

And that’s the best we’ve got for April. When I began doing these almost two years ago, they were averaging 10 to 15 per month. If PE-backed bankruptcies continue to trend down (and, they can’t really go down much further from here), my successor will be spending much less time hunched over elaborate spreadsheets.

He or she can thank last year’s amend & extend phenomenon for now, but it may not be for long. There’s a whole new crop of delusional PE pros and lenders who are agreeing, once again, to riskier and riskier capital structures and terms. It’s as if they’ve showed up to deal meetings in a time machine, one lender recently told me.

So if there weren’t any bankruptcies, what did happen in April? Instead of blow-ups and embarrassing mistakes, we covered IPOs and big, frothy auctions. The biggest blow-up—Steve Rattner taking the fall—had nothing to do with deals or investing acumen (even though you’d think Quadrangle’s investors would have been more than just a little suspicious about “Chooch.”)

So, even though there were no new Chapter 11s in April, download the spreadsheet below anyways, as I added a few that we overlooked from early in the year.

peHUB LBO-Backed Bankruptcies April 2010