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Investing in Distressed Businesses

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 […]


Beneath the Surface: Finding Truth in Debtor’s Balance Sheets

Editor’s Note: If you are interested in this topic, we would also like to recommend this Finance and Accounting webinar. A balance sheet provides a snapshot of a company’s financial condition as of a specific date by presenting three components: assets, liabilities, and equity.[i]  While a balance sheet may help its user to evaluate a […]


Investing in Bankruptcy Claims as a Cash Investment

Investing in bankruptcy claims (i.e., claims of creditors against bankruptcy debtors) can be very profitable or can result in a significant, or even total, loss.  Bankruptcy claims are classified in chapter 11 plans of reorganization according to their relative rights against the debtor.  The recovery of a given class of claims will depend on the […]


Buying Operating Assets from a Distressed Seller: A Practical Guide to Assessing Legal Risk

 “One man’s rubbish is another man’s treasure.” -William & Robert Chambers Journal of popular literature, science and arts (1879)  “A little learning is a dangerous thing” -Alexander Pope, An Essay on Criticism (1709)  Buying a business from a financially distressed seller can present a fantastic opportunity to buy low.  Before doing so, however, any buyer […]


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