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Post-Bankruptcy Investment Analysis

Written by admin | Jun 30, 2017 10:41:30 AM

At The Edge, we provide unmatched post-bankruptcy investment analysis solutions to a wide range of investors with different risk profiles. We understand that corporate bankruptcy proceedings can be complex, and that’s why we are here to convert all the information you require into easy-to-digest versions.

The Edge | What is Post-Bankruptcy Investment Analysis?

If you own a stake in a company that files for bankruptcy, chances are you will get back pennies to the dollar. Post-bankruptcy investment analysis is designed to help evaluate the rate of return available to you (the investor). You should remember that the amount you may get back is determined on a case-by-case basis. It could be a portion of your investment or all of it. With that, there are two main types of bankruptcy proceedings to keep in mind:

  • Chapter 7

The SEC states that Chapter 7 of the U.S. Bankruptcy Code refers to businesses that completely stop all operations and go completely out of business. Next, a trustee needs to be appointed to sell the assets of the company to pay off its debts. Investors, who took the least risk, are normally paid first.

  • Chapter 11

Public companies tend to try to file under Chapter 11 as it allows them to continue running their businesses whilst controlling the bankruptcy process. This U.S. Bankruptcy Code is usually filed by a company when it needs time to restructure debt that has become unmanageable. If all goes well, the company can regain sound financial health in the future. However, Chapter 11 reorganization is considered to be the more complex and costlier option of bankruptcy proceedings.

The Edge | Why You Need Actionable Intelligence About Post-Bankruptcy Investment

If a company you have invested in is going through bankruptcy proceedings, its bonds and stocks may continue to trade, albeit at significantly lower prices. Generally, if you are a shareholder, you may see a decline in the value of your shares. As mentioned, a company going bankrupt means you may not get back the full value of your investment.

While no one knows what will happen exactly, you could still benefit from gaining post-bankruptcy intelligence as it can help you find new investment opportunities after the company is declared bankrupt. You see, bankruptcy is not always a bad thing for investors or companies. However, successfully investing in bankrupt companies requires comprehensive fundamental research and analysis to divide the gems from the duds. This is a job that is best left to The Edge.

The Edge | Why Choose Us for Post-Bankruptcy Investment Research & Analytics?

The Edge was founded in 2005 and we use our industry-leading investment research and analysis capabilities to serve both U.S. and UK markets. We have been in the business for more than a decade and we have built a +8.5% alpha since our inception. As a leading financial intelligence service, you can expect stellar post-bankruptcy investment analysis solutions from us.

You will acquire insightful market intelligence that helps you make prudent investment and risk management decisions. There is so much to gain and nothing to lose when you work with us for your post-bankruptcy investment analysis needs. You will also be able to avoid wasting your time on obsolete mainstream research as well. Contact us today and get started on your journey to build spectacular ROI for your investments!