Are there more bankruptcies in the wings?
Where are all the Nevada business bankruptcy filings that were rumored to be in the works for early January?
While there have been 166 filings the first five business days of 2009, the majority have been Chapter 7 or Chapter 13 filings by individuals.
Only two businesses have filed for bankruptcy: the Chapter 7 filing by Silver State Bancorp., reported in Wednesday’s Review-Journal, and a Chapter 11 filing by Reno-based apartment owner Falcon Ridge Investment Co.
Both happened on Tuesday.
On a related note, PEHub.com, a Web site that follows private equity, said there were 49 bankruptcy filings nationwide in 2008 by companies owned by private equity firms, up from two in 2007.
Some of the firms caught going to the bankruptcy courts have separate investments in Las Vegas gaming companies.
Ziff Davis Media, backed by a joint venture led by DLJ Merchant Banking Partners, which own 86 percent of the Hard Rock Hotel, filed for Chapter 11 in March.
Two months later, Linens ‘N Things, backed by Apollo Management, which owns half of Harrah’s Entertainment, filed for bankruptcy.
Erin Griffith, a writer for PEHub and associate editor for Buyouts Magazine, writes: “I've heard predictions that this 49 number could double next year. I'm not sure about that, but given the number of mega-buyout sitting ducks I'm certain the amount of defaulted debt will double. Names of some of the largest buyouts have been tossed around, including worst deal of the year nominee Harrah's, backed by TPG and Apollo."
