Bankruptcy Investing: How to Profit from Distressed Companies Bankruptcy Investing: How to Profit from Distressed Companies 
By Ben Branch and Hugh Ray
06/2007 - Beard Books
1587982919 - Paperback  - 344 pp.

This well-documented tome is essential reading for the serious, knowledgeable bankruptcy investor who would like guidance toward a profitable investment strategy.

Publisher Comments

Category: Bankruptcy & Restructuring

This title is part of the Vulture Investing list.

Of Interest:

Bankruptcy & Distressed Restructurings: Analytical Issues and Investment Opportunities

Distressed Investment Banking: To the Abyss and Back 

Distressed Securities: Analyzing and Evaluating Market Potential and Investment Risk

Inside Investment Banking: Second Edition

Investing in Junk Bonds: Inside the High Yield Debt Market

Logic and Limits of Bankruptcy Law

The Executive Guide to Corporate Bankruptcy

The First Junk Bond: A Story of Corporate Boom and Bust

The High-Yield Debt Market: Investment Performance and Economic Impact

Why Companies Fail: Strategies for Detecting, Avoiding, and Profiting from Bankruptcy

Whether you are a sophisticated investor or a novice in the field of bankruptcy investing, this revised, updated version has everything you need to know about investing in distressed companies. While the book does not purport to give specific legal or investment advice, the astute reader will gain an in-depth understanding of the bankruptcy process itself and the players involved, as well as concepts and evaluation methods that can reap some impressive rewards in this risky, but potentially lucrative endeavor.

This topical and comprehensive resource is unique in that it provides the only extensive source material that effectively combines the legal and financial processes of bankruptcy investing into a coherent structure ---a combination essential to understand for successful bankruptcy investing.

From the back cover blurb:

The investment mania of the 1990s is history. The resulting financial hangover has been accompanied by a record number of bankrupt and near-bankrupt companies. Many of these "fallen angels" won't die -- they'll reorganize.

Ben Branch and Hugh Ray, both experts in the legal and financial aspects of bankruptcy investing, have provided a topical and easily understood handbooks explaining how bankruptcy can affect a corporation and its capital structure. Bankruptcy Investing should be required reading for all managers and investors who want to understand and profit from this inefficient and poorly understood process.

From the promotional flyer:

...Investment implications are studied for companies in different stages of financial distress -- companies going through formal workout, informal workout, Chapter 11 bankruptcy, and Chapter 7 bankruptcy.  The authors have studied the results of companies in Chapter 11 reorganizations and well-times investments in those companies.  Numerous case examples provide illuminating models.... The wealth of resource material provides guidance to cut through the Gordian knot of complex processes  as well as practical tips on investment information sources.  The extensive glossary of relevant terms is excellent.  This well-documented tome is essential reading for the serious, knowledgeable bankruptcy investor who would like guidance in developing a profitable investment program.

No book reviews available.

Dr. Branch is a professor of finance at the University of Massachusetts. He serves as the Chapter 7 Bankruptcy Trustee for the Bank of New England Corporation, and as manager of VLB LLC (the liquidating corporation for Vlasic Brands.) He is a member of the academic advisory council of the Turnaround Management Association. Dr. Branch has written extensively on investing and has personally invested in the securities of a number of troubled companies.

Hugh Ray is a partner in the law firm of Andrew & Kurth LLP and heads the firm's national bankruptcy practice. He is a member of the American College of Bankruptcy and has represented debtors, official committees, and creditors in many major bankruptcy cases including Bank of New England Corporation, Flagstar (Denny's), Continental Airlines, the Hunt Brothers, Zales, and Lomas.

Chapter 1 Inside the Bankruptcy Process 1
Chapter 2 Investing in Bankruptcies 33
Chapter 3 Bankruptcy / Reorganization Examples 60
Chapter 4 Additional Bankruptcy Case Studies 81
Chapter 5 Estimating Bankruptcy Values 115
Chapter 6 Quantitative Analysis of High Yield Securities 138
Chapter 7 Qualitative Aspects of High Yield Securities 
Analysis and Investment Information Sources
Chapter 8 Types of Securities 187
Chapter 9 The Determinants of Yields 217

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