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Old 02-09-2009, 08:53 AM
 
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Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.



15 Companies That Might Not Survive 2009 - Yahoo! Finance (http://finance.yahoo.com/news/15-Companies-That-Might-Not-usnews-14279875.html - broken link)
Realogy - Wikipedia, the free encyclopedia
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Old 02-09-2009, 08:54 AM
 
Location: Salem, OR
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Realogy has been in trouble for many months now. This is no surprise.
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Old 02-09-2009, 12:03 PM
 
Location: Barrington
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Apollo has a long history of investing in distressed business segments, an area that has become increasingly attractive to investors in the weakened economic environment.

Their strategy is to pursue mid - large-capitalized companies and franchise assets, principally on a control basis. In other words, fund managers, like Apollo look for companies that have or are likely to file for reorganization under bankruptcy and pay pennies on the dollar for them. In effect, they become the most significant creditor of the company and leverage this to control the company. They are first in line to be paid, before equity holders.

This type of financing is becoming increasingly more common because traditional sources of financing have come to a halt. The end investors in these funds tend to be big money, pension and retirement funds looking for a better ROI.

All franchise real estate companies, including ReMax, have fallen on hard times for the obvious reasons. Consolidation within the industry is to be expected as it is within most industries, right now.

Most of us fly in planes flown by carriers in bankruptcy, drive cars manufactured by companies in need of bail out, have mortgages owned by companies on the edge and have what's left of our money somewhere within the fragile banking system.
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