DISTRESSED ASSET

1 avril 2017 Posted by La Rédaction Publications No Comments

Asset being sold because its owner is forced to sell it; It is generally sold below the real perceived value of the asset. • The buyer thinks the asset price is really strongly below the current real asset price. He also think that he will not be affected by any legal issue linked to the purchased asset (Party selling really own the asset and no claim is open on the asset). • As the buyer may carry the asset during some time before re-selling it, he believe he will not be affected by strong inflation which may depreciate the value of the asset. • Buyers can be vulture funds, sophisticated institutional investors and Banks.

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