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Investing in Distressed Businesses

Third-Party Litigation Funding and Issues It Creates In Bankruptcy Cases – This Ain’t Your Father’s Contingency Fee Arrangement!

Third party litigation funding (“TPLF”) is, beyond a doubt, here to stay. In bankruptcy cases, TPLF arises in a number of contexts. First is the TPLF as a pre-petition secured or unsecured creditor—i.e. the TPLF source funded litigation and thereby acquired property rights in litigation proceeds or perhaps otherwise as a result. Second, in a […]


What’s the Difference Anyway? Oil and Gas Business Valuation Differentiated

Even for professionals who are well versed in business valuation theories and approaches, valuations in the oil and gas industry offers challenging issues.  This article provides a quick review of general valuation approaches and highlights some key characteristics and nuances of oil and gas valuations. Valuation Approaches Generally, the most common valuation approaches are: The […]


90 Second Lesson: First Step When Purchasing a Distressed Business

Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to info@dailydac.com and we will try to answer it. QUESTION: What is the first integral decision a potential purchaser of a distressed business must make? ANSWER: Assuming that the seller has not already […]


90-Second Investing Lesson: GP, LP and Sponsor

Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to info@dailydac.com and we will try to answer it. DISTRESSED ASSET INVESTORS should always be aware of the alternatives available to them, and also remain abreast of potential competitors, such as private equity. […]


RECOMMENDED READING: Distressed Investor Opportunity In Oil Patch Master Limited Partnerships

U.S. tax law encourages energy companies focused on exploration and production of oil, gas, and minerals to form as master limited partnerships.  That raises certain tax issues for investors in troubled debt of troubled energy companies. A group of lawyers from Kaye Scholer discuss related issues at length in a white paper entitled, “The Price of Oil […]


How to Analyze a Distressed Company (an Introduction) – Salon Media Group

In my last article, I described some of the ways in which individuals can invest in the distressed space. I also described why I think that for the average person it’s generally a much better idea to not try to make individual investments, but rather put money into a fund that has a good track […]


Is Distressed Investing for “the Little Guy”?

Given the focus of this site on distressed debt and equities, I’d like to highlight some points for those considering allocating some of their portfolio to distressed securities. The question I’ll address today is: should self-managed individual investors consider making their own picks in distressed securities? And if so, what is the best way to […]


RECOMMENDED READING: The Investor’s End Game in Chapter 11

In “Restructurings and Distressed Investing,”[1] James Inness and John Houghton of Latham & Watkins explain that an investor’s return depends upon the debtor making appropriate operational, financial and corporate alterations – of course – but also upon the investor conserving its power to effect such changes (usually in concert with other constituents) according to a realistic […]


What is Distressed Investing?

Distressed investing has been a distinct style of investing for a couple of decades now. Many of us probably feel we understand the general gist of it–purchase bonds of a company that are trading at 50 cents on the dollar, or equity shares that are priced below their long-term value, and if you’ve done your […]


RECOMMENDED READING: Where Bankruptcy Cases Can Proceed is Shaped by the Type of Reorganization and New Technologies for Case Management

Why do large and complex bankruptcy cases get filed mainly in Delaware and New York City?  For a valuable perspective on that question, the Editorial Staff of Commercial Bankruptcy Investor recommends Christopher A. Ward, “Venue: Energy Future’s Take on the Controversial Topic,” which is published on the Morris Anderson website.  Ward reviews a recent decision […]


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