Christopher Witkowsky

Private funds and investors are essential to the US Treasury’s plan to rejuvenate credit markets with the purchase of banks’ real estate-related toxic assets.

Private funds and investors are essential to the US Treasury’s plan to rejuvenate credit markets with the purchase of banks’ toxic assets.

The distressed investment specialist is surrendering all its stock in Thornburg Mortgage and has resigned its board seats. The residential mortgage lender has been given a grace period by lenders to come up with a restructuring plan.

The insolvent maker of aluminium products received court approval for a $1.075bn bankruptcy financing package despite objections from various lenders, including its owner TPG, and lenders Babson Capital and GSC Group.

The Canadian door maker has filed a pre-arranged bankruptcy in which the majority of the company’s creditors are supporting the restructuring plan. KKR, which has lost its equity stake of $429m in the company, took part in planning the restructuring.

The London-based firm is set to take up to an 18% stake in the clothing retailer by buying a portion of the company’s second lien debt. The debt is held by a fund associated with computer billionaire Michael Dell.

TPG’s objection comes after Babson Capital and GSC said the proposed bankruptcy financing is unfair to first-lien lenders who do not participate in the financing package.

The mega-firm acquired Masonite in 2005 in a deal valued at C$3.1bn, using about $429m in equity. Masonite’s fortunes began to turn last year as the US housing market declined.

Allied’s audit firm expressed ‘substantial doubt’ about the ability of the firm to continue as a going concern.

The publicly listed debt affiliate of Kohlberg Kravis Roberts has suspended its dividend to shareholders through 2009 as it tries to bolster its liquidity.