Ciena Capital Chapter 11 Petition Filed, Daily Deal

Daily Deal

October 1, 2008

Privately held Ciena Capital and ten affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, case number 08-13783. Ciena Capital, a portfolio company of Allied Capital, did not file for bankruptcy protection. The company, which is represented by Peter S. Partee  of Hunton & Williams, offers commercial real estate and working capital financing. According to documents filed with the Court, the Company's largest unsecured creditor is the U.S. Small Business Administration, which is owed $1.78 million and whose claim is contingent, disputed and subject to setoff. According to a release issued by Allied Capital, Ciena Capital has "continued to experience significant deterioration in the value of its assets as a result of increasing uncertainty in the financial markets, decreasing bid prices and a reduction in the number of loan buyers."