WEST PALM BEACH, FL (HEDGECO.NET) – The face value of distressed debt in the United States is estimated to exceed $600 billion. Prominent and lesser known distressed managers control a significant percentage of this country’s steel production, movie theaters, textile mills, casinos, airlines and automotive suppliers; over 10% of hedge funds are now at least partially dedicated to distressed debt; and limited partners allocations to distressed investments are on the rise.
In order to address this trend, Strategic Research Institute has brought together a distinguished series of speakers who will address the top issues affecting the market. This year’s carefully researched program will focus on where the market stands in the current credit cycle, the recent effect of hedge funds, both as distressed investors and lenders, on the distressed market, the “hands on” approach to distressed investing, amongst other things.
The 9th Annual Distressed Debt Investing Forum is being presented by the Strategic Research Institute at the Marriott Marquis, in New York City. It is scheduled for June 15-16.
Distressed debt usually involves the corporate bonds of companies that have either filed for bankruptcy or appear likely to do so in the near future. The strategy of distressed debt firms involves first becoming a major creditor of the target company by snapping up the company’s bonds at pennies on the dollar. This gives them the leverage they need to call most of the shots during either the reorganization, or the liquidation, of the company. In the event of a liquidation, distressed debt firms, by standing ahead of the equity holders in the line to be repaid, often recover all of their money, if not a healthy return on their investment. Usually, however, the more desirable outcome a reorganization that allows the company to emerge from bankruptcy protection. As part of these reorganizations, distressed debt firms often forgive the debt obligations of the company, in return for enough equity in the company to compensate them. (This strategy explains why distressed debt firms are considered to be private equity firms.)
Some companies attending the 9th Annual Distressed Debt Investing Forum will be: Accord Financial Arnstein & Lehr LLP Avenue Capital Group Back Bay Capital Banc of America Securities LLC Bilzin Sumberg Baena Price & Axelrod LLP Bingham McCutchen, LLP C.P. Eaton Partners, LLC Cappello Partners, LLC ComVest Investment Partners Corporate Financial Advisors, LLC Fortress Investment Group LLC GarMark Advisors, LLC GE Commercial Finance Gradient Partners, L.P. Halcyon LLC Imperial Capital, LLC Irell & Manella LLP Kargman Associates Kestrel Consulting Kilimanjaro Advisors, LLC Kurtzman Carson Consultants Littlejohn Distressed Securities, LLC Lone Star U.S. Acquisitions Miller Buckfire & Co. LLC Monomoy Capital Partners Pantheon Ventures Pardus Capital Partners Resilience Capital Partners LLC Reuss & Partner Seth Kosik Siguler Guff & Company, LLC Societe Generale SSG Capital Advisors Starwood Capital Group TD Capital Private Equity Investors Tricadia Capital LLC Triple F. Funding, LLC UBS Investment Bank Viking Global Wachovia Capital Finance
Alex Akesson
Contributing Writer
HedgeCo.Net
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