Martin J. Whitman, Fernando Diz, Daniel D'Aniello

Distress Investing

Principles and Technique

• Gebundenes Buch

Produktbeschreibung

A comprehensive guide to distress investing around the world Increasingly, corporate rehabilitation is more interesting than corporate liquidation to governments and capital markets. Following this trend, a mezzanine industry of mutual funds, hedge funds, and private investors has stepped up to fill the role of the traditional corporate lender. Distress Investing puts this topic in perspective and covers the essential aspects of this discipline–from its theoretical underpinnings to its practical applications. The book features cases studies of some of the biggest distress investing situations, including Kmart and Pacific Gas & Electric. From the recent changes to U.S. bankruptcy code and creditor rights to cash bailouts, readers will learn how to analyze distressed situations such as pricing issues, arbitrage opportunities, tax disadvantages, and the reorganization of funding plans. Written by the leading practitioner of distress investing and coauthored by a leading academic in the field, this book is certain to become the bible on this topic for professional investors and students alike. Martin J. Whitman (New York, NY) is Chairman and Co CIO of Third Avenue Management LLC. He is also the author of Value Investing (978 0 471 16292 6) and The Aggressive Conservative Investor (978 0 471 76805 0), from Wiley. Fernando Diz (Syracuse, NY) is the Martin J. Whitman Associate Professor of Finance and Director of The Ballentine Investment Institute at Syracuse University.

Produktdetails

• Wiley Finance
• Verlag: Wiley & Sons
• 1. Auflage
• Seitenzahl: 272
• Erscheinungstermin: 13. April 2009
• Englisch
• Abmessung: 235mm x 157mm x 19mm
• Gewicht: 451g
• ISBN-13: 9780470117675
• ISBN-10: 0470117672
• Artikelnr.: 26009399

Autorenporträt

Martin J. Whitman is Chairman and co-CIO of Third Avenue Management LLC. He has taught courses in value investing and distressed investing for the past thirty years at the Schools of Management at both Syracuse University and Yale University. Whitman is also the author of the Wiley titles Value Investing and The Aggressive Conservative Investor. Fernando Diz is the Martin J. Whitman Associate Professor of Finance and Director of the Ballentine Investment Institute at Syracuse University. His research specialties are in the areas of trading, derivative securities, and value and distress investing. Diz has written for the Journal of Futures Markets, the Review of Financial Studies, and the Journal of Alternative Investments.

Inhaltsangabe

Foreword. Preface. Acknowledgments. Part One: The General Landscape of
Distress Investing. Chapter 1: The Changed Environment. Trends in Corporate
Debt Growth and Leverage before the Financial Meltdown of 2007-2008. Junk
Bonds and the Levering-up Period. The Syndicated Loan Market and Leveraged
Loans. The Financial Meltdown of 2007-2008. The Principal 2005 Bankruptcy
Amendment as they Affect Chapter 11 Reorganizations of Business. Chapter 2:
The Theoretical Underpinning. What market? Towards a general theory of
market efficiency. The External Forces Influencing Markets Explained. What
risk? Capital structure and credit risk. Valuation. The company as a
stand-alone. Control and its vital importance. Chapter 3: The Causes of
Financial Distress. Lack of access to capital markets. Deterioration of
operating performance. Deterioration of GAAP performance. Large off-balance
sheet contingent liabilities. Chapter 4: Deal Expenses and Who Bears Them.
Attorneys and Financial Advisers' compensation structure and the
distribution of the fee pie. Time in Chapter 11 and the number of legal
firms retained. The determinants of legal fees and expenses. The
determinants of financial advisers' fees and expenses. Can professional
costs be excessive? Appendix. Chapter 5: Other Important Issues. Management
compensation and entrenchment. Tax and political disadvantages. Chapter 6:
The Five Basic Truths of Distress Investing. Truth 1: No one can take away
a corporate creditor's right to a money payment outside of Chapter 11 or
Chapter 7. Truth 2: Chapter 11 rules influence all reorganizations. Truth
3: Substantive characteristics of securities. Truth 4: Restructurings are
costly for creditors. Truth 5: Creditors have only contractual rights. Part
Two: Restructuring Troubled Issuers. Chapter 7: Voluntary Exchanges.
Voluntary Exchanges. The holdout problem illustrated. Making a voluntary
exchange work. Tax Disadvantages of a Voluntary Exchange vs. Chapter 11
Reorganization. Chapter 8: A Brief Review of Chapter 11. Liquidations and
reorganizations. Starting a case: Voluntary vs. Involuntary petitions.
Forum shopping. The parties in a Chapter 11 case. The administration of a
Chapter 11 case. The Chapter 11 Plan. Chapter 9: The Workout Process.
Parties and their differing needs and desires. Types of Chapter 11 Cases.
Leverage factors in Chapter 11. Part Three: The Investment Process. Chapter
10: How to Analyze: Valuation. Strict Going Concern Valuation. Resource
conversion valuation. Liquidation valuations. Chapter 11: Due Diligence for
Distressed Issues. Chapter 12: Distress Investing Risks. Risks associated
with the alteration of priorities. Other risks. Chapter 13: Form of
Considerations vs. Amount of Consideration. Part Four: Cases and
Implications for Public Policy. Chapter 14: Brief Case Studies of
Distressed Securities 2008-2009. Performing Loans Likely to Remain
Performing Loans. Small Cases. Large Cases. Capital Infusions into Troubled
Companies. Chapter 15: A Small Case: Home Products International. The early
years. Growth by acquisitions. Retail industry woes. The fight for control.
Amendment of indenture and event of default. The decision: Prepackaged
Chapter 11. Treatment of impaired classes under the Plan. Financial means
for implementation of the Plan. Going concern and liquidation valuations.
Chapter 16: A Large Reorganization Case: Kmart Corporation. Landlords and
Unexpired Leases. Vendors and Critical Vendor Motions. Management and KERPs
pre 2005 BAPCPA. Fraudulent Transfers. Subsidiary Guarantees and
Substantive Consolidation. Chapter 11 committees and out of control
professional costs. Blocking positions. Buying claims in Chapter 11. DIP
Financing. Kmart's Plan of Reorganization and Plan Investors. Investment
Performance. Chapter 17: An Ideal Restructuring System. Feasibility and
Cash Bailouts. Good Enough Rather Than Ideal. Highly Beneficial Elements in
the U.S. Restructuring System. The Goals of an Ideal Restructuring System.
Suggested Reforms. About the Authors. Notes. Index.

Rezensionen

"...this is the best book that I have read since The Black Swan...do yourself a favor and pick up a copy; you'd be crazy not to." (SeekingAlpha.com, June 11, 2009)