Publications
Publications
- June 2017
- HBS Case Collection
The U-Turns of National Truck Stops
By: Nori Gerardo Lietz and Alexander W. Schultz
Abstract
Raj Makam had spent months trying to restructure a 2006 investment he had made in National Truck Stops, Inc. (“NTS”) as a senior member of Oaktree Capital Management’s (“Oaktree”) Mezzanine finance business within their Corporate Debt platform. It was the first time they had truly considered forcing a company into involuntary bankruptcy, which he clearly would prefer to avoid lest they risk losing their entire investment. As the company’s financial position worsened, Oaktree’s counterparties became increasingly difficult. It often seemed as if they were prioritizing their ongoing business relationships over the economics of their respective investments. Oaktree knew the cards were stacked in its favor legally, but did that really make a difference when the cost of perfecting its interests would be so expensive and difficult? Would this be a Pyrrhic Victory? Teaching Note for HBS No. 217-062.
Keywords
Mezzanine Financing; Corporate Debt; Bankruptcy; Real Assets; Financing and Loans; Borrowing and Debt; Insolvency and Bankruptcy; Restructuring; Private Equity; Cost vs Benefits; Atlanta; New York (city, NY)
Citation
Lietz, Nori Gerardo, and Alexander W. Schultz. "The U-Turns of National Truck Stops." Harvard Business School Teaching Note 217-075, June 2017.