The “Revolver Raid” Arrives: A Wave Of Shale Bankruptcies Has Just Been Unleashed

Thursday, April 2, 2015
By Paul Martin

by Tyler Durden
ZeroHedge.com
04/02/2015

Back in early 2007, just as the first cracks of the bursting housing and credit bubble were becoming visible, one of the primary harbingers of impending doom was banks slowly but surely yanking availability (aka dry powder) under secured revolving credit facilities to companies across America. This, in effect, was the first snowflake in what would ultimately become the lack of liquidity avalanche that swept away AIG and unleashed the biggest bailout of capitalism in history. Back then, analysts had a pet name for banks calling CFOs and telling them “so sorry, but your secured credit availability has been cut by 50%, 75% or worse” – revolver raids. Well, the infamous revolver raids are back.

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