The Wall Street Journal-20080205-Wachovia Taps Bankruptcy Watchdog

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Wachovia Taps Bankruptcy Watchdog

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Former federal bankruptcy watchdog Deirdre A. Martini has joined a Wachovia Corp. lending unit to help expand its business in the bankruptcy and restructuring arena in the Northeast.

Ms. Martini will join Wachovia Capital Finance, a part of Wachovia's investment banking operations, as a managing director, the bank said.

The Wachovia Capital Finance unit provides asset-based lending services, specializing in lines of credit from $5 million to more than $1 billion. It also provides comprehensive debt restructuring, debtor- in-possession funding and turnaround services.

In the past few years, Wachovia has funded the Chapter 11 cases of such companies as Levitt & Sons LLC, Lionel LLC and Global Home Products LLC.

Ms. Martini said wobbly U.S. economic conditions should allow Wachovia to take on a greater role in helping companies restructure both in and out of bankruptcy. "I think that we will see more out-of- court restructurings and in-court formal restructurings and Wachovia would very much like to be part of that growth in the restructuring business," she said.

For nearly three years Ms. Martini was U.S. trustee for the Southern District of New York. U.S. trustees are appointed by the attorney general to monitor bankruptcy cases on behalf of the Justice Department. She resigned from her position as U.S. Trustee in April 2006, joining CIT Group Inc. as a senior restructuring adviser.