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Distressed dept


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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