The Brink

Europe Feels the Private Credit Pain as Funds Become Reluctant Owners

Debt-for-equity swaps suggest Europe is undergoing its own private credit reckoning
An Esso gas station in Berlin, Germany. Rising energy prices threaten more stress at Europe’s mid-market companies.Photographer: Krisztian Bocsi/Bloomberg
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Welcome to The Brink. I’m Libby Cherry, a reporter in Frankfurt following takeovers of struggling companies by private credit. We also have news on hopes by Barclays for a relatively strong recovery on its loans to collapsed MFS, and a windfall for iHeartMedia bondholders. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net.

When private credit lenders take control of struggling companies, the transition can appear orderly. In practice, it often reflects deeper tensions behind the scenes.