Kevin Ley

A recent lawsuit by a firm against two LPs highlights the new dangers that may await those who fail to find liquidity solutions in today's market.

Moody's has followed Fitch in slashing its debt rating for Energy Future Holdings as concerns mount over its ability to pay creditors. The company formerly known as TXU was purchased by TPG, KKR and Goldman Sachs in a $45bn transaction, the largest-ever buyout closed to date.

SK Capital is purchasing assets including manufacturing plants from St. Louis-based Solutia for $50m.

An LP or GP going through a divorce may have to split the fund interest with an ex-spouse.

The US-based cable provider, whose primary bondholders include Apollo and Oaktree Capital Management, has obtained support for a pre-arranged bankruptcy plan intended to reduce its debt load by $8bn.

The US government's moves to gain greater regulatory control over large financial instutions would obligate some private equity firms to register with the SEC and supply data including the names of LPs and leverage levels on deals.

The New York-based private equity firm has taken the unusual step of suing two of its smaller LPs – Chalice Fund and WK CG Investments – for allegedly defaulting on capital contributions to three funds.

Euronext-listed fund of funds Lehman Brothers Private Equity Partners is changing its name to NB Private Equity Partners and will help its bankrupt parent company unload 14.5 million shares in secondary transactions beginning in mid-2010.

The US radio and advertising company, which was purchased by Bain Capital Partners and TH Lee last year in a $17.9bn deal, had its rating fall to deeply speculative territory, with Moody’s warning of default.

Profits in the fourth quarter for the New York-based firm, which manages more than $1tn in assets, were hit especially hard by hedge fund and real estate losses.