Private Equity Firms' Distressed Company Handovers Signal Trouble for Lenders
The bankruptcy of GenesisCare, a cancer treatment specialist backed by KKR & Co. and China Resources Pharmaceutical Group Ltd., serves as a warning for lenders as corporate failures continue to rise. Debt investors are struggling to salvage money from bankrupt companies, highlighting the low recovery rates in the leveraged-loan market and the impact of looser loan protections for private equity-backed firms.