Distress Investing Maymester in NYC

Understanding the rules: The Bankruptcy Code

Monday morning

1. Short Bankruptcy Course (Read once before coming to class)

2. Preliminary Presentation Slides

3. Exhibit #1 Security Agreement Example

4. Exhibit #2 UCC Financing Statement

5. Exhibit #3 Proof of Claim

The above links provide you with the "before class" reading assignment. It is very important that you read the handout at least once before class to take advantage of Prof. Germain's lecture.

If you want to learn more about:

1. Administrative claims: Read Chapter 4 of the required book - "The professional costs of Chapter 11".

2. Rejection of leases example: Read Chapter 16 of the required book.

3. Volunary Exchanges: Read Chapter 7 of the required book.

Below, I include two links to very timely topics: a) distressed mergers and acquisitions, which explains how changes of control are effected in Chapter 11, and b) a bankruptcy guide, which is written by lawyers for the layman to understand reorganizations. The material is provided to supplement Prof. Germain’s lectures.

     Distressed Mergers and Acquisitions

     A guide to the Bankruptcy Law of the USA

QUIZ #1 will be avilble on Blackboard at 1:00pm. You have 30 minutes to complete it. It will automatically close at 1:30pm. Quiz is based on Prof. Germain's morning lecture.

Monday afternoon

1. A conceptual model of the firm that help us understand the basis of distress investing.

2. Understanding credit, credit analysis and the substantive characteristics of securities of credit instruments.

3. The five truths of distress investing

4. The causes of financial distress

Book chapters:

1. Creditworthiness: Chapter 7 of Modern Security Analysis.

2. Five basic truths of distress investing: Chapter 6 of required book.

3. Causes of financial distress, Chapter 3 of required book.

Examples of companies in financial distress:

1. J. Crew files for Chapter 11, Monday, May 4, 2020.

2. Hertz Global Holdings in financial distress. Trying to stay out of Chapter 11, April 29, 2020.

3. Bed Bath & Beyond tries to stay out of Bankruptcy, March, 30, 2023.

4. SVB Financial Files for Bankruptcy protection, March 17, 2023.