Several years ago, Hicks Muse and Kohlberg Kravis Roberts each wrote cheques for $500m to acquire Regal Cinemas. They then loaded an additional $1.8bn in debt on to the company. The movie chain could not service all that debt and filed for bankruptcy protection.

Distressed debt funds paid 60 cents on the dollar for the debt, acquired control of Regal from the two private equity firms and eventually reaped windfall profits on the investment.