Distressed debt
Corporate bonds of companies that have either
filed for bankruptcy or appear likely to do so in the near future.
The strategy of ASAP involves
first becoming a major creditor of the target company by snapping up
the company's bonds at pennies on the dollar.
This gives them the leverage
they need to call most of the shots during either the
reorganization, or the liquidation, of the company.
In the event of a
liquidation, ASAP, by standing ahead of the equity holders in the
line to be repaid, often recover all of their money, if not a
healthy return on their investment.
Usually, however, the more
desirable outcome a reorganization that allows the company to emerge
from bankruptcy protection.
As part of these
reorganizations, ASAP often forgive the debt obligations of the
company, in return for enough equity in the company to compensate
us.
(This strategy explains why
distressed debt firms are considered to be private equity firms.)
Debt & Equity Placement
ASAP works intimately with clients who
are seeking new sources of capital, and we are actively involved in
all stages of raising debt and/or equity, from evaluation to
structuring and to final closing.
Our in-depth knowledge of the
client's company as we go through the process of reviewing its
business plans, conducting due diligence, and performing financial
modeling and analysis, allows us to recommend an ideal capital
structure that meets the client’s business objectives and financial
requirements.
We identify and approach potential financial and strategic investors
within our extensive business network.
We evaluate offers and negotiate
the terms and conditions, structures and modalities for and on
behalf of our client, and select offers that represent the most
appropriate funding that create value for our client's as well as
investors.
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