Deutsche Bank AG and its co-lenders were staring at tens of millions of dollars in potential losses.
The banks -- a who’s who of Wall Street’s top underwriters -- had promised to arrange loans to fund Apollo Global Management LLC’s buyout of discount grocer Smart & Final Stores Inc., which the private-equity firm planned to split in two.
But worried about razor-thin margins and intense competition in the industry, many investors had shown little appetite in recent weeks for the riskiest part of the deal -- a $380 million tranche tied to the company’s retail side. . . . . more