Steinhoff International and Carillion, whose share prices have slumped by about 90% over the past year, have another thing in common: both companies raised funding from an obscure private debt market that was once mainly the preserve of solid German Mittelstand companies. With the two companies now trying to restructure their debt, it heralds a rude awakening for the typically sleepy Schuldschein market, usually an unrated product with features akin to both loans and bonds, which has attracted international borrowers in recent years. "With these recent high-profile credit events, the Schuldschein market has to face up to the new reality," said Sebastian Zank, an analyst at Scope Ratings.The growing financial difficulties of South African retail conglomerate Steinhoff and UK construction group Carillion have prompted many to ask whether the market is paying enough scrutiny to this new breed of international issuer. One restructuring adviser said an international company turning to th...

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