Berman executives have snapped up the Lehman Brothers-owned mutual fund
manager, estimated at a value of $5bn to $6bn six months ago, out of an auction
without handing over any cash.
In the deal, the executives will hold 51% of Neuberger and creditors agreed
to wait for a payoff through Neuberger’s future earnings. Creditors will own 93%
of a separate preferred stock issue currently valued at $875m (£591.5m), which
they expect to sell when market conditions improve, according to The Wall
As late as yesterday, the Neuberger auction was in deep trouble after the
deadline had been extended twice and several private-equity firms, including the
Carlyle Group, had backed out and other private-equity firms Bain Capital and
Hellman & Friedman quit an agreed $2.15bn offer, signed in September.
But rather than a failed auction, which would have been a humiliating result
for Neuberger’s leaders, they gained a bargain.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
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The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies