PT  - JOURNAL ARTICLE
AU  - Stephen M. Brecher
AU  - Stephanie Breslow
AU  - Adam C. Harris
AU  - James Horgan
AU  - Deirdre A. Martini
TI  - “Alternative“ Investment Managers and Bankruptcy
AID  - 10.3905/jpe.2007.682338
DP  - 2007 Feb 28
TA  - The Journal of Private Equity
PG  - 47--51
VI  - 10
IP  - 2
4099  - https://pm-research.com/content/10/2/47.short
4100  - https://pm-research.com/content/10/2/47.full
AB  - A growing number of private equity funds and hedge funds are using bankruptcy proceedings as a way to acquire control of companies for significantly less than they would have to pay in an auction or hostile takeover. Activist investors are purchasing claims against companies veering toward bankruptcy and using them to gain influence in the creditor committees that shape a bankrupt company's reorganization as well as to benefit if debt is converted to equity. The impact these new patterns of bankruptcy are having on the U.S. economy is not yet clear, but those who find themselves becoming involved in these new bankruptcy proceedings must be prepared to play by a new and ever-changing set of rules.TOPICS: Private equity, financial crises and financial market history, portfolio construction, analysis of individual factors/risk premia