<< back

“Distressed Investing” Series - April, 2007

Cumberland Capital is starting a short, monthly e-newsletter on Distressed Investing, describing the kinds of situations we’re seeking or undertaking.   This first newsletter is focused on “Messy Ownership” deals, which is a shorthand way of describing a host of ownership issues:

- Disputes between owners where all attempts at resolution have failed to date;
- Court mandated mediation between business owners;
- Corporate Divorce where owners (who have serious disputes with each other) have agreed to sell the company; perhaps one of the owners wants to remain and help manage the business;
- Owner is in personal bankruptcy and/or the IRS has seized assets, in which case the business assets have become part of the settlement;
- The subsidiary is a stepchild which has been neglected and/or drained of resources to fund upstream parent activities, resulting in underperformance and/or cash constraints at the subsidiary;
- The parent corporation is in bankruptcy although the subsidiary may be healthy.  Selling the subsidiary requires knowledge of the bankruptcy process and most Private Equity Groups seeking healthy companies don’t want to deal with the prolonged process of the courts.

If you or a client knows of a Messy Ownership situation that needs to be resolved, please call Deby Glidden, President of Cumberland Capital.  Cumberland Capital is affiliated with a Private Equity Group which invests in distressed companies, including Messy Ownership situations, where companies have revenue from $10 million to $100 million, located preferably in the eastern half of the US.

Deby Glidden
President
Cumberland Capital Company
10 Piedmont Center, Suite 525
Atlanta, GA  30305
Tel. 404-995-6220; Fax 404-995-6221
www.cumberlandcapital.com
glidden@cumberlandcapital.com