Distressed funds circle Spain

Reuters UK – Vulture funds are finally saying debt from Spanish retailer Cortefiel is now cheap enough to buy, after waiting for months to see prices of the struggling company’s debt fall further.

The funds, which have raised billions of dollars to invest on the hopes that a worsening global economy will depress debt prices, are closely monitoring the Spanish group whose debt trades at about 42 percent of its face value.

"At these levels, you have to start thinking," said a hedge fund manager, under the condition of anonymity.

Cortefiel, owned by private equity firms Permira, CVC and PAI Partners is struggling as the Spanish economy slows in the wake of the credit crunch after a real estate bubble in the country burst.

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