Banks are finally getting tough with private equity. They have taken control of almost €50bn ($65bn) of private equity-backed companies in Europe since the beginning of 2009 as a result of those companies defaulting on their debt.

This activist approach is a reversal from the times when banks were more inclined to let financial sponsors off the hook, than play hardball with them, according to bankers working in restructuring. But it has also raised questions as to whether the banks are equipped to make a profit from owning these companies or whether they will face further losses.