There may be trouble ahead ..

Following Permira and Candover's equity wipe-out with Italian yacht maker Ferretti, it is PAI's turn to get a haircut with the lenders taking over at Monier, its roofing portfolio company. All of these are a direct result of the combination of the leverage frenzy and the subsequent economic slow down. Now investors are addressing the leveraged issues of troubled portfolio companies such as LBO France's Terreal and Wendel's Materis. It should be noted that these companies have been in negotiations with creditors for the best part of the year and are likely to find a sensible conclusion