Synopses & Reviews
This comprehensive new study examines the impact of the 1978 Bankruptcy Reform Act on firms that file under Chapter 11 and on investors who own shares or bonds in financially distressed corporations. Demonstrating that high average returns often accompany wise investment choices concerning bankrupt firms, the authors explain how to spot potential investment targets, assess investment risk, and profit from investing in firms undergoing reorganization following a bankruptcy filing. Both individual and institutional investors looking for new investment opportunities and students of corporate finance and financial management will find important new insights into the investment potential of financially distressed firms. "Investing in Financially Distressed Firms represents a good buy for those who would like to hunt bargains in the broken angel sector of the market." Journal of High Yield Bond Research
Review
This book examines the impact of the 1978 Bankruptcy Reform Act on firms that file under Chapter 11 and on investors who own stock or bonds in financially distressed corporations. The authors describe an analytical model for picking out potential investment targets and assessing risk in firms undergoing bankruptcy reorganization. They also deal with the legal issues involved and describe the environment within which a bankrupt firm operates. Four case studies illustrate the process of bankruptcy and the possible investment outcomes.AAII Journal
Synopsis
Demonstrating that high average returns often accompany wise investment choices concerning bankrupt firms, the authors explain how to spot potential investment targets, assess investment risk, and profit from investing in firms undergoing reorganization following a bankruptcy filing.
About the Author
MURALI RAMASWAMI is Senior Vice President and Director of Product Development at the Travelers Investment Management Company.SUSAN E. MOELLER is an Assistant Professor of Finance at the University of Michigan in Flint.
Table of Contents
Preface
Introduction
Shrewd Investors and Bankrupt Firms
The Environment and Bankrupt Firms
The Law and Reorganization of Bankrupt Firms
Prediction of Successful Reorganization
Stock Market Efficiency and Bankrupt Firms
Case Studies
Bibliography
Index