Guardian.co.uk – "Parts of the current complexity arises from the existence of distressed debt investors who sometimes see commercial advantage from using an insolvency process to organise the sale of the viable part of a business to a solvent buyer leaving behind the least profitable parts," Tony Lomas, chairman of PwC Business Restructuring, said.

Vulture funds buy debt in struggling firms at a significant discount – sometimes at 20p in the pound – expecting that when the company breaches its loan covenants and falls into administration, a sale of assets may repay debt at a higher price.

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Tags: assets, breaches, business restructuring, commercial advantage, complexity, distressed debt investors, existence, guardian, insolvency process, loan covenants, tony lomas, vulture funds