The operator of the Tropicana Casino and Resort, which was featured in the films Viva Las Vegas and Diamonds Are Forever, filed for bankruptcy protection in May 2008. Canadian private equity firm Onex Corp. (TSX: OCX) has succeeded in taking over the Las Vegas icon.

Onex's main buyout fund has cobbled together a stake in the casino's senior debt that will make it the largest shareholder when a restructured Tropicana emerges from bankruptcy protection.

Though Onex will gain control of a prime location in one of the hottest spots in the city and one of the busiest pedestrian intersections in the world, it comes at a time when the fortunes of sin city are suffering due to economic conditions.

Room rates have plunged and passenger traffic into the city's airport is down 14% in the first three months of the year. But Onex founder and CEO Gerry Schwartz believes that gambling is a growth industry, and that investing in Las Vegas is a long-term value because the city has historically weathered downturns better than expected.

On its prior conference call, The Blackstone Group LP (NYSE: BX) said it's planning to scoop up distressed buyout bonds. With its cash hoard, it seems like a good bet. Besides, there are signs that the debt markets are picking up, especially in light of the financing of the First Data deal.

According to news reports, some other firms now are seeing dollar signs from the same strategy. Take Onex, which is a top private equity firm in Canada.

But there's a hitch: Onex does not have the right staff to pull it off. Just like many other private equity firms, Onex focused on putting deals together. Onex said it is talking to a two-person group to help out. Hmmm....does seem kind of flimsy, huh?

Basically, this is yet another indication of why big firms, like KKR, TPG, and Blackstone, have big advantages. With their scale and resources, they certainly are nicely positioned when markets have sudden changes.

But, the distressed debt opportunity might be big enough for many firms. After all, as Onex's CEO, Gerald Schwartz, said: "there are opportunities that are just staggering."

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Last week, it certainly looked like the buyers of Qantas Airways -- Texas Pacific Group, Allco Equity Partners, and Onex Corp. -- did not have enough shareholder support for the $9 billion transaction.

Well, things can certainly change quickly and it appears that a U.S. investor has saved the day. This is according to a report in Bloomberg.

The conventional wisdom was that the tough hurdles of the deal would be the Australian government and unions. Actually, they proved fairly easy compared to some tough shareholders who want to maximize their returns.

Then again, Qantas is a great franchise and continues to grow. So why not try to get top dollar?

So it's going to be a long weekend for Qantas and its determined buyers. Although, this is still not a done deal. Now, in the next stage, Qantas will need to get 70% acceptance on the tender.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Back in June 2005, the Canadian private equity firm, Onex formed a new company, Spirit AeroSystems Holdings, to buy the aircraft component factory business from The Boeing Company (NYSE:BA).

In the deal, Onex invested roughly $375 million and borrowed $700 million.

This week, Spirit went public. And it was a huge windfall for Onex, which got $1.16 billion in cash plus an equity stake worth about $1.9 billion.

Another example of private equity firms feeding at the trough? Perhaps. However, Onex had to deal with contentious negotiations with Spirit's unions. Basically, the unions agreed to wage cuts -- in exchange for equity.

It was certainly a good move for workers. On average, a union employee got about $60,000 in a stock windfall.

Also, Onex made some other smart moves, such as purchasing a factory from BAE Systems PLC (ADR) (OTC:BAESY).

Oh, and timing has been good, too. There's been a big jump in airline orders -- especially for Spirit's largest customer, Boeing.

Tom Taulli is the author of various books, including the Complete M&A Handbook. He operates InvestorOffering.com.