Around Wall Street, bankruptcy advisers are excited by the current wave of private equity deals. They are expecting that, with an increasing number of companies borrowing large sums of money to be taken private in leveraged buy-outs, the number of potential defaults – or bankruptcies – is likely to grow significantly.
Tony Alvarez, co-founder and managing director at Alvarez & Marsal, the New York-based restructuring firm, says he may be jaded after working with troubled companies for decades but still believes there is an “inevitability to cycles”.
