Realogy Says Apollo has its Back

Realogy, the parent of real estate services companies like Coldwell Banker and Century 21, announced that it lost $1.7 billion in the fourth quarter of 2008. It also said that Apollo Investment Management would help the company stay current on its debt obligations. The company, which has $3.25 billion of senior secured net debt, recently attempted to exchange out some of its debt but the proposal was rejected by its bond holders.

Apollo's backing of Realogy and its debt payments is an example of the increasingly difficult "which portfolio companies to save" call that private equity investors will have to make. Apollo has already seen Linens 'n Things go bankrupt and has two more on the ropes: Harrah's Entertainment and Claire's Stores. Cerberus Capital Management is another investor facing this decision, and it appears to be tapped out with Chrysler, but still undecided on GMAC Financial Services.