Distressed debt investing in Germany – opportunities and limitations

Nicholas Richter

2006

To ease the burden on their balance sheets, banks in Germany, as in other countries, are increasingly selling off distressed debt. The investors must be willing to take on risky commitments by buying such debt on reasonable terms and ultimately generating a positive return on their investment.

Referring to a comprehensive catalog of criteria, Nicholas Richter investigates the cultural, economic and legal aspects of the practice of distressed debt investing. Drawing on numerous interviews with experts, he traces the experience of the American market and uses this data to probe and evaluate the future of such transactions in Germany.

The individual conclusions that Richter formulates in this context concern structural, legal and cultural obstacles. They provide investors, banks and restructuring consultants with valuable advice on handling distressed debt investments.