The Razor's Edge #18: The Bankruptcy Market With Sam Zughayer from The Razor’s Edge

The Razor's Edge #18: The Bankruptcy Market With Sam Zughayer

54 minutes Posted Jun 18, 2020 at 8:00 am.

– Where Sam gets involved in the process normally

– What makes this time different

– What the government learned in 2009 and how that affects things

– Rule of contract law in the current climate

– The implication of the Hertz ruling

– The capital structure component and the structural effects for business

– The Hertz precedent and effect on other bankruptcies

– The longer-term legacies of this period

– The problem with shale oil

– Is this unhealthy? The Zombie element of sustaining firms.

– And the formerly healthy companies that fall, what of them?

– Looking back at stock buybacks

– Will behavior change?

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Show notes

One of the stranger dislocations in 2020 has been the behavior of stocks that are bound to or have already filed bankruptcy, with Hertz's offering of new equity this week as the biggest example of the phenomenon. We speak with Sam Zughayer, managing director of Berenson & Company, about what might explain this, what he's seeing, and where this may end up.

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