Providence Equity Partners and Newport Global Advisors have completed their acquisition of True Temper Sports through a prearranged Chapter 11 restructuring. The two firms invested approximately $70 million of new equity in the manufacturer and marketer of golf club shafts and lined up a $12.5 million credit facility from GE Capital. Through restructuring, the company was able to reduce its debt by 80% from $275 million to less than $40 million.
Private equity firms have invested almost $3.5 billion in 33 bankrupt companies year to date, according to the PitchBook Platform. The top sector for bankrupt investing was automotive with 6 deals followed by specialty retail with 3 deals. This biggest bankrupt company acquisition from a PE firm this year was Ripplewood Holdings' $594 million buyout of Interstate Bakeries in February. 20 bankruptcy-related investments were completed during the second half of 2009, as compared to 13 in the first half, a number that will most likely continue to rise as new companies run into cash flow trouble and PE firms are better able to value depressed assets.