DISTRESSED DAILY: Lenders Stuck in Triage Mode, Adviser Says

Commercial lenders are playing nice with troubled, middle-market borrowers, in part because they are stuck triaging other clients who are in even worse shape.

• Companies that were doing well before the pandemic aren’t being punished for “covenant defaults that would trigger aggressive responses in normal times,” according to Duff & Phelps Securities LLC adviser Geoffrey Frankel.
  • “Lenders have to pick their spots,” said Frankel, who is managing director for restructuring and special situations specializing in middle market companies, or those with about $100 million to $600 million of annual revenue.
• “What I’m seeing now is that sources of capital, whether ...