Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt , 3rd Edition
Since the publication of the last edition ofCorporate Financial Distress and Bankruptcyin 1993—considered by many to be the most authoritative finance book on this topic—the fields of corporate distress and bankruptcy, as well as related markets dealing with high-yield and distressed debt, have undergone enormous growth and change. Today, there's no doubt that bankruptcy is a big business, and over the last decade both professionals and academics have become increasingly interested in the activities surrounding this phenomenon.In this newly revised Third Edition ofCorporate Financial Distress and Bankruptcy, credit and corporate bankruptcy experts Ed Altman and Edith Hotchkiss update and expand the discussion of corporate distress and bankruptcy, as well as the related markets dealing with high-yield and distressed debt. In addition to expanded empirical and descriptive aspects of bankruptcy and credit analysis, this Third Edition offers state-of-the-art analysis and research on the costs of bankruptcy, credit default prediction, bankruptcy and distressed restructuring, and the post-emergence period performance of bankrupt firms.Divided into two comprehensive sections,Corporate Financial Distress and Bankruptcy, Third Edition addresses a number of key issues central to your understanding of the restructuring process in Section One and deals with the development and implications of models built to classify and predict corporate distress in Section Two. Specific topics covered in the opening section include:An introduction to, and statistical background of, corporate distress and bankruptcyEvolution of the U.S. Bankruptcy Code, including the Bankruptcy Reform Act of 2005, and international comparisonsPost–Chapter 11 performanceDistressed firm valuationHighly leveraged restructuringsInvesting in distressed securitiesThe high-yield bond market: risks and returns for investors and analystsCorporate governance in distressed firmsIn Section Two, models for estimating default probabilities are discussed, followed by explanations of their applications to many different scenarios, including distressed debt investing, turnaround management and other advisory capacities, and legal issues. With respect to the discipline of turnaround management, you'll become familiar with the possibility of using distressed firm predictive models—for example the Z-Score approach—to assist the management of the distressed firm itself and facilitate its return to financial health.Filled with in-depth insight and practical advice,Corporate Financial Distress and Bankruptcy, Third Edition offers a well-rounded look at the growth and evolution of distressed debt, corporate bankruptcy and credit risk in today's dynamic business environment.