Comments on Distressed Debt Investing: Distressed Debt News Weekly Round-Up

I am new to this site. I have just learned about t...

2010-01-04T07:48:57.671-05:00

I am new to this site. I have just learned about this site. I am going to read on and it’s very interesting to know.

very interesting, would you like to do a analysis ...

2009-04-26T20:27:00.000-04:00

very interesting, would you like to do a analysis on Harrah's?

Sami: I believe Hunter reviewed that in the GGP p...

2009-04-23T13:53:00.000-04:00

Sami:

I believe Hunter reviewed that in the GGP post, but Pershing got a $15mm incentive fee for the DIP piece. This financed the ~$15mm outlay for the equity position and helped expediate the reorg process. If another fund owned the equity piece, they would likely battle for better terms and extend the process. Yet in this case Pershing could argue that if GGP conceeded favorable DIP terms Ackman (as an equity holder) would support a filing and the subsequent wipeout of the equity holders.

JG

Can you please discuss whether it is common for pu...

2009-04-19T21:10:00.000-04:00

Can you please discuss whether it is common for purchasers of distressed debt (or original bank lenders) to also buy cds (and have zero economic exposure or even negative net exposure) and then vote their interests in a manner which may not be in the company's best interests (e.g. the recent article in FT about Citibank and Abitibi). Do you see this a lot and do you think the law should be changed to require people to prove their economic exposure before voting in bankruptcy? Thanks

can you elaborate on why do you think Ackman posit...

2009-04-19T13:01:00.000-04:00

can you elaborate on why do you think Ackman position in GGP is bargaining chip?

I never though there is any value in the equity. In normal times sure they may survive but now with abysmal retail sales and distressed commercial real estate markets the value will disappear quickly.