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The slumping economy and credit crunch has forced several private equity firms to pump millions more in cash into their New Zealand investments, to keep the banks at bay.
Bankers have privately confirmed some businesses bought by private equity firms over the past three years are already breaching banking covenants.
Deals which raised eyebrows at the time they were done include the $2.2 billion buyout of Telecom's Yellow Pages, the purchase of TV3 owner MediaWorks, and the leveraged buyout of Michael Erceg's Independent Liquor.
Australian firm Ironbridge, which bought MediaWorks from troubled Canadian company CanWest in 2007, has said it is happy with the business, which includes one of the country's two big radio networks, although it acknowledges that television advertising, in particular, is going through a tough time.
It has revealed it expects a shake-up in the media sector over the next couple of years, with many media businesses expected to be up for grabs here and in Australia.
Speculation is rife that Sky TV might be interested in acquiring TV3 as part of the shake-up.
Private equity firms acknowledge the bubble has already burst in the sector.
But smaller local players say 2009 could yet be a vintage year, with company valuations plummeting.
