Stuck positions
What is distressed debt investing?
Distressed debt investing means buying loans, notes and other credit positions that have defaulted or gone into workout at prices that reflect the real situation, then using restructuring expertise to recover whatever value is left.
We buy non-performing loans, mezzanine positions and private notes in workout or enforcement, at prices that reflect the real situation.
Not every distressed position is worthless. Most are mispriced by sellers who need them gone. We look at the legal position, the capital structure and a realistic route to recovery before we make an offer.
Recoveries are uncertain. Legal proceedings can take years, and restructuring plans can fail. Investors in this strategy need to be ready to hold for a long time.