One of the best things about the Distressed Debt Investors Club is the collective knowledge of a group of very strong analysts and portfolio managers that have trafficked in a number of very complicated bankruptcy proceedings. No two bankruptcy cases are exactly alike. For various reasons (judges, capital structure and guarantees, covenants, outside interest), the chips can fall in a number of different ways in the same bankruptcy proceeding. The bankruptcy code and each of its articles can be interpreted differently by numerous parties. It is what makes distressed debt investing so fascinating.
- Inequitable conduct by the claimant
- Misconduct causing injury to creditors or the bankruptcy estate or conferring an unfair advantage to the claimant
- The finding of equitable subordination must be consistent with bankruptcy law