Buying and selling distressed companies - Paperback

by Michael Teng (Author)

Why would anyone want to invest in a company that has declared or is near bankruptcy? Most people would not want to touch such a stock but there are many who specialize in this very field. Distressed securities are the securities such as stocks, bonds, other financial claims of a company that is close to or has reached financial distress. If a company has filed for bankruptcy, it is under financial distress. This category also includes bank debt and non-performing loans. They fail to make regular interest or principal payments, and they trade at yields higher than those of similar dated Treasuries. Who would want to invest here? Once their financial distress becomes evident, there is lot of panic selling and these then trade at deep discounts. At this stage, they present an attractive opportunity to anyone who has analysed their true worth. In recent years, private firms such as hedge funds, private equity firms have been among the largest buyers of distressed securities. They hold the securities until they have appreciated, and then sell them. This book examines the fundamental issues in relating to buying and selling of distressed companies. It is a sequel to the first highly successful book by the same author: Fundamentals of buying and selling companies.

Author Biography

Dr Mike Teng is the author of a best-selling book "Corporate Turnaround: Nursing a sick company back to health", in 2002 which is also translated into the Bahasa Indonesia and Mandarin. His book is endorsed by management guru Professor Philip Kotler and business tycoons Mr Oei Hong Leong and Dr YY Wong. He subsequently authored more than fifteen management books. Dr Teng is currently the Managing Director of Corporate Turnaround Centre Pte Ltd (www.corporateturnaroundcentre.com) which provides corporate training and management advisory services in the region. He is the national trainer appointed by the National University of Singapore to train displaced senior managers and deploy them to run Small Medium Size companies. He has more than 29 years of experience in starting new plants, strategic planning, operational management responsibilities in the Asia Pacific region. Of these, he held Chief Executive Officer's positions for 19 years in multi-national and publicly listed companies. He was the CEO of a US MNC based in Singapore for ten years. He also advised several boards of directors of publicly-listed companies. Dr Teng served as the Executive Council member for fourteen years and the last four years as the President of the Marketing Institute of Singapore (2000 - 2004), the national marketing association. Dr Teng holds a Doctor in Business Administration (DBA) from the University of South Australia, Master in Business Administration (MBA) and Bachelor in Mechanical Engineering (BEng) from the National University of Singapore. He is also a Professional Engineer (P Eng, Singapore), Chartered Engineer ( C Eng, UK) and Fellow Member of several prestigious professional institutes namely, Chartered Institute of Marketing (FCIM), Chartered Management Institute (FCMI), Institute of Mechanical Engineers (FIMechE), Marketing Institute of Singapore (FMIS), Institute of Electrical Engineers