Business

Black Diamond may buy GSC Group

Posted September 01, 2010 11:00 pm

GSC Group Inc., which calls itself a "diversified alternative investment manager," filed Chapter 11 petitions for itself yesterday and affiliates. It intends on selling the assets "shortly." There is already an offer from the agent for secured lenders owed $206.6 million.

Originally named Greenwich Street Capital Partners Inc. when it was a subsidiary of Travelers Group Inc., GSC became independent in 1998 and at the peak had $28 billion of assets under management. With market reverses, termination of some funds, and withdrawal of customer's investments, GSC now manages $8.4 billion in 28 investment funds.

Based in Florham Park, New Jersey, GSC listed assets of $119.8 million against debt totaling $313.6 million.

Black Diamond Capital Finance LLC is the agent for the secured lenders. GSC is negotiating for Lake Forest-based Black Diamond to buy the assets.

GSC also owes $10.2 million to Calyon New York Branch on an interest rate swap agreement.

The case is In re GSC Group Inc., 10-14653, U.S. Bankruptcy Court, Southern District New York (Manhattan).

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