Alacrity’s Private Loan Deemed Safe Months Before Restructuring

At the end of June, Alacrity Solutions’ debt looked like a solid bet, at least according to the prices assigned to it by lenders, a group that included Blue Owl Capital Inc., Antares Capital and KKR & Co.

Cut to late October and, with little warning, the insurance claims manager was headed into full-scale restructuring talks. A rapid deterioration in earnings was blamed as weather-related claims dwindled and more insurers brought adjusting services in-house.

By early January the private credit lenders, who had made a $1 billion wager on the business via senior debt, took the keys ...