Bankruptcy Investing: How to Profit from Distressed Companies (2nd Edition) [Paperback]

Ben Branch (Author), Hugh Ray (Author)

Book Description

ISBN-10: 1587981211 | ISBN-13: 978-1587981210 | Publication Date: January 19, 1999 | Edition: Rev

Corporate bankruptcies are at an all-time high, and this trend is likely to continue. Bankruptcy Investing introduces investors to the risky but lucrative opportunities to invest in the securities of troubled companies. Every area of this exciting field is described in complete detail. Real-world examples illustrate the explanations. Companies in distress may go through an informal or formal workout of problems, or they may enter Chapter 11 or Chapter 7 bankruptcy. The investment implications for the securities of firms in each of these stages are considered in full. Everything the investor needs to know is contained in this book. The authors show why it can be smart to invest in troubled companies.

--This text refers to an out of print or unavailable edition of this title.

Editorial Reviews

From the Publisher

Corporate bankruptcies are at an all-time high, and this trend is likely to continue. Bankruptcy Investing introduces investors to the risky but lucrative opportunities to invest in the securities of troubled companies. Every area of this exciting field is described in complete detail. Real-world examples illustrate the explanations. Companies in distress may go through an informal or formal workout of problems, or they may enter Chapter 11 or Chapter 7 bankruptcy. The investment implications for the securities of firms in each of these stages are considered in full. Everything the investor needs to know is contained in this book. The authors show why it can be smart to invest in troubled companies.

Whether you are a savvy investor or experienced fund manager (or aspire to be one), Bankruptcy Investing introduces you to the risky but lucrative opportunities for investing in the securities of troubled companies. This timely new book describes in detail the rules of the game and how to apply them to pick the winners. The authors, both experts in the legal and financial aspects of bankruptcy investing, explain everything you need to know about investing in distressed companies, including estimating bankruptcy values, how to use timing to your advantage, quantitative techniques to minimize risks, evaluating available data, characteristics of various types of short-term and long-term debt instruments, investment strategies, and sources of additional information. You'll fully understand all the implications of investing in the securities of firms in all stages of financial distress--from informal or formal workouts to Chapter 11 or Chapter 7 bankruptcy--as well as investing in both debt and equity securities. Real-world examples illustrate how you can profit from investing in troubled companies and what risks are incurred. An extensive glossary defines legal, economic and financial terms. Bankruptcy Investing translates the often-confusing lexicon of bankruptcy into a profitable investment program that you can implement immediately. You too will discover an exciting way to find new investment winners.

Two financial experts guide you through the risky but lucrative investment opportunities available in troubled companies. Whether your interests are informal or formal workouts, Chapter 11 or Chapter 7 bankruptcies, debt or equity securities, this book will explain everything you need to know about investing in distressed corporations. Topics include estimating bankruptcy values, how to use timing to your advantage, quantitative techniques to minimize risk, evaluating available data, the characteristics of various types of short-term and long-term debt instruments, and investment strategies. The authors illustrate their points with real-world examples, and provide an extensive glossary defining legal, economic and financial terms. --This text refers to an out of print or unavailable edition of this title.

About the Author

Mr. Ray heads the national bankruptcy practice of Andrews & Kurth. He primarily represents creditors and creditors' committees. He currently represents or has represented the Unsecured Creditors' Committee of Flagstar Corporation; the Trustee for the Bank of New England Corporation; the Senior Unsecured Creditors' Committee of In re First Republic Bank Corporation; the ad hoc Bondholder's Committee of American Rice, Inc.; the Agent Bank and Bank Syndicate in In re William Herbert Hunt Trust Estate, Nelson Bunker hunt Trust Estate, Lamar Hunt Trust Estate, et al.: the Institutional Lenders for In re Storage Technology; the Institutional Creditors of In re Continental Airlines, Inc.; and the Insurance Company Lenders of In re Braniff Airlines, Inc. he has also represented the Bank Lenders for In re CompuAdd Corporation and the Unsecured Creditors' Committee and Petitioning Creditors for In re First City Bancorporation of Texas. Mr. Ray serves on the Council of the Business Law Section of the American Bar Association (1997- ). He is immediate past chair of the Business Law Section's Business Bankruptcy Committee (approximately 1400 practitioners in virtually every firm across the country which engages in extensive bankruptcy practice); he is the current chair of the Joint Ad Hoc Committee on Bankruptcy Court Structure and Insolvency Processes (a high level task force of the ABA Business Law Section, General Practice Section, Real Property, Probate and Trust Section, Judicial Administrative Division and Litigation Section, with participation by bankruptcy court judges, district court judges and court of appeals judges, leading academics and practitioners.) Mr. Ray has presented positions before congressional committees by testifying several times before the House Judiciary Committee and the Senate Judiciary Committee concerning proposed amendments to the Federal Bankruptcy Code. In addition, Mr. Ray was an invited participant to lead a presentation before the National Bankruptcy Review Commission (appointed to draft bankruptcy law proposals and report to Congress). Mr. Ray is immediate past chair of the Committee on Trust Indentures and Indenture Trustees of the Business Law Section of the American Bar Association. Mr. Ray also served as a member of the Standing Committee of the American Bar Association on Judicial Selection, Tenure and Compensation.

Vanderbilt University School of Law LL.B., 1967

Vanderbilt University B.A., English, 1965

Frequent lecturer for Practicing Law Institutes, ABA National Institutes and the National Conference of Bankruptcy Judges. Lecturer at ABA satellite seminars. Mr. Ray is a frequent contributor in legal periodicals and a member of the Texas Lawyer Board of Contributors. Mr. Ray is a co-author of Bankruptcy Investing, text book for graduate business schools. Lecturer for the Central and Eastern European Law Initiative, Vilnius Lithuania, 1996

Professional Licenses and Associations:

Board Certified, Business Bankruptcy Specialist, Texas Board of Legal Specialization and the American Board of Bankruptcy Certification. Elected, American College of Bankruptcy. Selected, Best Lawyers in America. Elected Member, American Law Institute; Member, Consultative Group for Redraft of Article 9 of the Uniform Commercial Code; Member Consultative Group, Transnational law project. Past Chair, Bankruptcy Committee, State Bar of Texas 1986-1989. Program director, Advanced Business Bankruptcy Institute, State Bar of Texas. Member, American Bankruptcy Institute. State Bar of Texas, 1967; U.S. District Court, Southern District of Texas, 1968; U.S. District Court, Western District of Louisiana, 1980 U.S. District Court, Western District of Texas, 1978; U.S. District Court, Northern District of Texas, 1981; U.S. Circuit Court of Appeals, 5th Circuith, 1968; U.S. Circuit Court of Appeals, 11th Circuith, 1982; U.S. Circuit Court of Appeals, 9th Circuith, 1979; U.S. Supreme Court, 1970; New York, 1992 --This text refers to an out of print or unavailable edition of this title.

Product Details

• Paperback: 324 pages
• Publisher: Beard Books; Rev edition (January 19, 1999)
• Language: English
• ISBN-10: 1587981211
• ISBN-13: 978-1587981210
• Product Dimensions: 9.1 x 6 x 0.9 inches
• Shipping Weight: 1.1 pounds
• Average Customer Review: 4.3 out of 5 stars  See all reviews (9 customer reviews)
• Amazon Best Sellers Rank: #1,494,404 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

8 of 8 people found the following review helpful:

5.0 out of 5 stars The premiere book on the subject, February 6, 2002

By A Customer

This review is from: Bankruptcy Investing: How to Profit from Distressed Companies (Paperback)

As a bankruptcy lawyer, I have read many of the books out there. But I haven't seen one better than this. Professionals and non-professionals should use the book as a checklist for evaluating bankruptcies. Written in common-sense language, it gives the "inside" details on what you REALLY need to know to tell whether a bankruptcy is a good investment.

15 of 18 people found the following review helpful:

1.0 out of 5 stars Very poor content and presentation, March 18, 2002

By A Customer

This review is from: Bankruptcy Investing: How to Profit from Distressed Companies (Paperback)

I was really disappointed with this book, particularly given that it was written by seasoned bankruptcy experts. The book is very skinny on content - it spends about 30 pages on bankruptcy law and its procedures, a few on case studies that are superficial/poorly written and several on bond analysis, and standard research tools that are well-known to a person with basic financial knowledge, ie the sort of people who would be interested in something relatively exotic as Bankruptcy Investing. The few useful pages that there are are marred by poor writing, and a complete absence of analytical frameworks that stay with the reader.

Bankruptcy is a complex topic and there is a need for a book of the sort Branch and Ray have attempted. However, this is most certainly not that book.

9 of 10 people found the following review helpful:

5.0 out of 5 stars Absolutely Terrific Introduction into Bankruptcy Investing, September 5, 2002

By 

Robert G. Barnwell "Robert G. Barnwell" (New York City) - See all my reviews

Amazon Verified Purchase

This review is from: Bankruptcy Investing: How to Profit from Distressed Companies (Paperback)

Great introduction and overview of the world of distressed and bankruptcy investing. The authors managed to synthesize a very complicated subject into an easy-to-read and understandible book. Of course no one book can cover the entire subject in detail, but this one comes amazingly close. Highly recommended.