Article: The Next New Thing - Distressed M&A.

Also covered in the April 9, 2008 edition of The Globe and Mail

April kicks off loan review and renewal season. Across the country, bank loan officers are reviewing year-end financial statements and assessing corporate prospects. This process is likely to result in a further tightening of lending standards and widening of credit spreads. A recent Federal Reserve study reports that already one third of U.S. banks have tightened loan criteria and that 45 per cent of banks are now charging more for credit.

All signs are that this tightening of credit conditions will lead to an increase in corporate insolvencies and workouts. Weak companies that have avoided cutbacks and ...

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