A 60day moratorium was obtained until midMay

If they want to survive, the LBO professionals must take their responsibilities. In 2009, less than a dozen will be signed on SMEs, large acquisitions of LBO will be almost non-existent. Gold on some 1,500 companies currently under LBO, two-thirds have criteria for the granting of debt that are more respected due to the economic slowdown, says Gonzagues de Blignières, Chairman of Barclays Private Equity France, yesterday released its barometer of the LBO market. "The occupation is at the crossroads of paths, j. this former head of the Afic. Funds retain the same sorting requirements, and 2009 will be a white year either, they spend a part of their cash by investing in their LBO in difficulty. It is our job to be shareholder.

The means are a priori since more than 12 billion have been lifted for LBO operations last year. Generally, the investment vehicles retain 15 of their funds for external growth of their portfolio companies. "Should there, a little more, keep advance Gonzagues de Blignières." Considering that the market will be half less active this year, around 4 billion euros of investment, one can be dedicated to firms in difficulty. "And set a good example: Barclays Private Equity maintains its second fund of EUR 1.6 billion EUR 150 million and 300 million euros on the balance of $ 1.1 billion of the third vehicle, to support any cash of the most fragile businesses in its portfolio.

A principle of good management

A message that appreciate perhaps different competitors. "It is a basic principle of never putting the good money after bad, believes the head of a large Fund.". Investors entrust us funds with a specific mandate. "If deemed fatal difficulty, some people prefer to move the hand, as recently Invescorp in Autodistribution. "It is a very laudable intention to allocate a reserve to the difficulties of businesses, supports a banker Council. But as to the casino, it is dangerous to store to.

However "if it is transitory difficulties, and that the undertaking can be challenged flow by injection of cash, money is a principle of good management," concedes the head of an investment company. It is also a question of relative strengths with the banks that require that the shareholder reinvestment to alleviate the constraints of debt of the company, the time of the reversal of conditions.

Many cases pending

In the meantime, there is no lack of records. For financial tensions of Kaufman & Broad, PAI has abandoned its dividend and can inject a bit of cash if necessary. Banks, however, have maintained their lines of credit and in even granted a new. To resolve the difficulties of Terreal which has broken its covenants, LBO France proposes to inject EUR 70 million, according to Debtwire.

Concessions which flow source. Many cases are pending. Funds Sagard and Cognetas attempt to rescue SGD (Saint-Gobain Desjonqueres), which broke its covenants end of 2008 to more than six times Ebitda, indicates Debtwire. A 60-day moratorium was obtained until mid-May.

Monier, a different folder to PAI, discussions are still ongoing. A restructuring plan is expected in May.

Materis, into the fold of Wendel, will engage in discussions with its creditors, still indicates the Agency. In January, the company has made half Ebitda less than budgeted for 3.5 million euros, as well as in December. But "it is not sure that Wendel is considering a capital injection", reported a near-record, cited by Debtwire.