Burns, Mairin
May 2003
Investment Dealers' Digest;5/5/2003, Vol. 69 Issue 18, p24
Trade Publication
The gradual retreat by U.S. investment banks has radically transformed the telecommunication-financing landscape-hopefully for the better.Telecommunication is no longer a freewheeling business run by mavericks, some of whom think little of bending the rules when it suits them.Instead of being financed by Wall Street's bull market machine, the industry is run by distressed-debt specialists, or vulture funds, that have taken big stakes in the bankrupt telecommunication companies, often as part of a restructuring in which bondholders become owners.As painful as the restructuring process has been, the tough management style of these new investors is expected to put the companies in a better competitive position. As one company after another caved under the weight ofits debt, banks scrambled to recover what they could, helping some companies restructure their existing debt and providing debtor-in-possession financing to others. Banksare usually top of the list come payback time and they typically have the right to force a company to sell assets to pay them.


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