'Fulcrum' Deals Rising To Prominence, Experts Say

Law360, New York (October 9, 2009, 1:26 PM EDT) -- As companies mired in debt continue to seek refuge in bankruptcy court, popularity is growing in so-called fulcrum investing, a risky bet placed on debt securities bought on the cheap and expected to be converted into equity holdings through the restructuring process, attorneys and other observers said.

Previously the realm of hedge funds and other nontraditional investors, fulcrum security investing has started to attract broader interest from private equity firms and other more mainstream vehicles as opportunities proliferate — with debt-for-stock swaps becoming fairly common practice...
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