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Cerberus’s Chrysler Bankruptcy Sets Record in U.S. LBO Industry

By Edward Evans

May 1 (Bloomberg) -- Chrysler LLC’s bankruptcy marks the biggest collapse of any company owned by a private-equity firm, according to research firm PitchBook Data Inc.

Chrysler, acquired by investors led by New York-based Cerberus Capital Management LP for $7.4 billion in August 2007, filed for bankruptcy yesterday. The carmaker, based in Auburn Hills, Michigan, listed total assets of $39 billion and liabilities of $55 billion, making its bankruptcy the fifth largest in U.S. history.

The following table shows the biggest bankruptcies in the U.S. by private-equity-backed companies, compiled by Seattle- based Pitchbook.


Company                  Deal Size      Filing    Investors

Chrysler                 $7.4 billon    2009      Cerberus
Charter Communications   $4.5 billion   2009      Vulcan
Masonite International   $1.9 billion   2009      KKR & Co.
Aleris International     $1.7 billion   2009      TPG
Hawaiian Telcom          $1.65 billion  2008      Carlyle
Mervyn’s                 $1.65 billion  2008      Cerberus
CDX Gas                  $835 million   2008      TCW
Buffets                  $665 million   2008      CI Capital
Leiner Health Products   $650 million   2008      Golden Gate
Merisant                 $570 million   2009      Pegasus
Capital

Source: Pitchbook

To contact the reporter on this story: Edward Evans in London at at eevans3@bloomberg.net

Last Updated: May 1, 2009 16:29 EDT

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