Top-class bankruptcy lawyers, vulture investors and credit experts revealed a range of emotions at a bankruptcy conference on Thursday, from doom and gloom to subdued confidence, but some comments bordered on outright glee.
Reflecting on the prospects for distressed investing opportunities this year, Michael Psaros, managing partner at KPS Capital Partners, was blunt.
“We are going to invest an awful lot of money this year,” Psaros said, during a Dow Jones restructuring and turnaround conference in New York. “We’re just very excited about this year and next.”
KPS Capital, which manages special situations funds and private equity funds with capital exceeding $1.8 billion, is ramping up its investments, he said.
Asked whether investors should weigh creditor interests, shareholders’ concerns, company stakeholder views or even the interests of the country, Eric Zinterhofer, senior partner with Apollo Management, said distressed debt investors will pursue a strategy based on the best “dispassionate distribution of capital” in making their investment decisions.