Distressed Debt Financing
EMI's Distressed Debt team has been through several full cycles. The team is comprised of professionals with diverse backgrounds in portfolio management, law, accounting, consulting, valuation and banking. They combine extensive experience in distressed bank debt, defaulted securities and bankruptcy situations.
We favor large, fundamentally sound companies that are overleveraged and we often assume a leadership role in the financial restructuring process. We target companies that wish to buy back their existing debt at a discount, engage in an M&A transaction or access capital markets via a debt offering.
We pursue the following investment opportunities:
Distressed debt active / non-control
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The goal is to accumulate significant positions in companies that are likely to go through, or are in, a bankruptcy restructuring process.
Distressed debt control
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We build a controlling position in the fulcrum distressed security in a bankruptcy proceeding to effectively buy control of the target company and begin the process of maximizing profitability either through restructuring, merging, or liquidation.
Distressed credit restructuring / turnaround
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We buy suffering target companies utilizing equity, sometimes purchasing them before an expected bankruptcy and other times during the bankruptcy process. The goal is to gain control of companies that are under par value and then restructure them.
Bridge Lending
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We as distressed debt investors may also extend Bridge and Debtor-in-Possession (DIP) loans to selected companies.