Blackstone’s Slaughterhouse Blacklist Puts SVP Trades in Limbo
- PSSI fell into distress in aftermath of child-labor scandal
- Blackstone has sought to keep SVP from building stake in loan
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Blackstone Inc.’s effort to ban certain investors from scooping up the debt of a struggling portfolio company has left millions of dollars of trades stuck in limbo.
The buyout giant has sought to prevent distressed-debt heavyweight Strategic Value Partners from amassing a position in a loan to slaughterhouse cleaner Packers Sanitation Services Inc. by enforcing a so-called disqualified lender list, according to people with knowledge of the matter. A key point of contention between the firms is whether SVP qualified for an exemption that made it eligible to purchase the debt under the terms of the deal documents, the people said, adding that efforts are underway to resolve the issue.