Apollo Management's timing on its Realogy deal couldn't have been worse. It bought the operator of franchised real estate businesses, such as Century 21 and Coldwell Banker, for $7 billion just before the real estate bubble burst. We've noted before that it has an interesting strategy for dealing with the loans: It aims to make up to $650 million in debt disappear by trading $500 million in new loans for $1.15 billion of old bonds.

The incentive for accepting such a low face value is that you can maintain your position in the pecking order, which makes it more likely you'll actually get paid. Still, there is no guarantee the bonds will be paid off. That strategy has generated resentment from some, including, the New York Times suggests, Carl Icahn. A lawsuit is possible, and Apollo is certainly pulling out all the stops to save this one.

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