George Schultze & Janet Lewis 
The Art of Vulture Investing 
Adventures in Distressed Securities Management

A detailed and compelling look at distressed securities
investing in today’s market

In the corporate world, ‘vulture’ investors in
distressed securities serve the same cleanup function as vultures
do in the natural world: they deal with failing companies, digest
bad debt, and mop up after bankruptcies. Since this market’s
structural and legal complexities create greater inefficiencies
than in other investment fields, it’s a style of investing
that can make money during both booms and busts. While recent
economic carnage has made opportunities for vulture investors, more
convoluted bankruptcies, conflicts of interest, and even government
intervention have made this arena harder to negotiate.

Nobody understands this better than author George Schultze,
founder of Schultze Asset Management. During his successful career
as a vulture investor, he’s learned a number of lessons and
developed an investment philosophy that has served him well. Now,
in The Art of Vulture Investing, Schultze shares his valuable
insights and experiences with you. Engaging and informative, this
reliable guide offers a bird’s-eye into the opportunities and
risks associated with vulture investing. And while it may not
always be pretty, you’ll see exactly why this process is
necessary for our economic ecosystem.

Throughout this book, Schultze explains the theory and strategy
of vulture investing in clear and lively prose, illustrating each
concept with examples from his own varied experience that show how
the landscape has changed in recent years.

* Offers valuable information on distressed securities investing
since the 2007-2009 financial crisis

* Examines the opportunities and dilemmas for modern vulture
investors

* Includes in-depth case studies of high-profile bankruptcies,
including those of Chrysler Automotive and Tropicana Casinos and
Resorts

By its very nature, investing in distressed companies can be a
complicated and risky business. But once the dust settles,
these investments can yield extraordinary profits. The Art of
Vulture Investing puts this discipline in perspective and shows
you how to excel at this difficult, yet rewarding, endeavor.

قائمة المحتويات

Foreword ix

Acknowledgments xi

Preface xiii

Chapter 1 Emerging from the Egg 1

Chapter 2 Learning to Scavenge 17

Chapter 3 Looking for Prey 39

Chapter 4 Waiting On a Limb 63

Chapter 5 Swooping In: Tropicana 73

Chapter 6 Fighting Over the Carcass: Chrysler 95

Chapter 7 Digesting the Remains 115

Chapter 8 A Vulture’s Philosophy 131

Appendix 1 Net Operating Loss Carry Forwards 139

Appendix 2 Copy of Continued Objection by Ad Hoc Committee of Washington Group Class 7 Claim Holders 141

Appendix 3 Letter to Washington Group’s Board of Directors 153

Appendix 4 Shareholder Complaint against Winn-Dixie Board et al. 157

Appendix 5 Objection by Schultze Asset Management to Owens Corning Disclosure Statement 177

About the Authors 185

Index 189

عن المؤلف

George Schultze (Purchase, NY) has been an actively investing in distressed securities for over 14 years. He is Managing Member and Portfolio Manager of Schultze Asset Management, LLC, and?chairs the Schultze Research and Strategy Committees, making the final decision on all investments for the portfolio.? During and after graduate school he managed a family fund investing in distressed securities and special situations. From 1996-98, Mr. Schultze was a Senior Analyst at MD Sass investing a $1.3 billion portfolio. He honed his activist approach to investing with analysis and committee work for various investments including: Marvel Entertainment Group, Mobile Media Communications, Signet Jewelers, and CGE Ford Heights.? While in graduate school, he was employed at Fiduciary Partners, Mayer Brown & Platt, the Law Office of Grant Herrmann Schwartz & Klinger, and at Merrill Lynch.? At Fiduciary Partners, a $25 million fund-of-funds that invested in distressed hedge funds, he developed strong views on the types of distressed strategies that lead to consistent success. Mr. Schultze is a joint graduate of Columbia Business School and Columbia Law School, JD/MBA (’95/96).? He served as editor of certain articles in the Columbia Business Law Review and separately, founded the Columbia Law School Investment Club. Mr. Schultze earned a B.A. from Rutgers College where he graduated with a joint major in Economics/Political Science. Mr. Schultze is a frequent speaker at investment conferences such as the Harvard Business School Venture Capital & Private Equity Conference, the Wharton Business School Distressed Securities Forum, the Columbia Business School Investment Management Conference, the Beard Group Distressed Securities Forum and the Opal Financial Summit.? He has been interviewed by Bloomberg, FOX, and CNBC, as well as The Street.com, CNN, CNNfn, The Wall Street Journal, and The Daily Bankruptcy Review.