This course focuses on the principles of distressed debt investing. The course covers fundamental credit analysis, an overview of the bankruptcy process, a description of the mechanics around the trading of distressed debt in the secondary marketplace, and the basics of modeling prospective returns of distressed debt opportunities from the perspective of an investor in these transactions. Students will come out of the course with an understanding of the capital structure of highly leveraged companies and an understanding of how to underwrite and assess their debt.
Students will approach distressed debt transactions from a variety of stakeholder perspectives – including creditors, debtors, judges, and restructuring advisors. The course will consist of a series of case studies covering a range of transaction types, including debt exchanges, liability management exercises (“LMEs”), bankruptcies, application of asset sale proceeds, and litigation-oriented credit investments. The seminar will feature leading lawyers, credit investors, and investment bankers as guest lecturers.
The course will benefit students who are interested in asset management, credit investing, private equity, and restructuring/turnarounds.
