May 1, 2002
Business Reorganization and Restructuring partner Marc Abrams called upon by the Wall Street Journal as an expert on corporate restructuring to discuss potential investment opportunities in the wake of the Enron debacle. The May 23rd article, “Enron Bets May Bite ‘Vulture’ Firms,” focuses on why deep-pocketed but low-profile investment firms turn to down-and-out companies such as Enron as a source of potentially high returns.
Business Reorganization and Restructuring partner Marc Abrams was recently called upon by the Wall Street Journal as an expert on corporate restructuring to discuss potential investment opportunities in the wake of the Enron debacle. The May 23rd article, “Enron Bets May Bite ‘Vulture’ Firms,” focuses on why deep-pocketed but low-profile investment firms turn to down-and-out companies such as Enron as a source of potentially high returns. Immediately after the fall of Enron, certain investment firms began buying the collapsed energy giant’s depressed debt at bargain-basement prices in the hopes of realizing tremendous profits if the assets of Enron should turn out to be worth more than investors had anticipated. Mr. Abrams told the WSJ that if these so-called vulture firms “don’t get burned sometimes, they are not taking enough risk.” He cautioned that any of these companies face a real likelihood of being badly squeezed by gambling big on Enron and its subsidiaries. Marc Abrams frequently represents clients in the retail, construction, manufacturing, entertainment/recreation, automotive, health care, hospitality, and high-tech industries. His international experience includes issues and matters involving the insolvency laws of Argentina, Australia, Bermuda, Canada, France, Germany, Mexico, Russia, Spain, Switzerland, The Netherlands, and the UK, among other nations.