Special situation funds may invest in stressed assets, security receipts, and qualifying defaulted-company securities, including as resolution applicants. Special situation assets include eligible stressed loans, security receipts issued by a registered Asset Reconstruction Company, and securities of ... Summary
Special situation funds may invest in stressed assets, security receipts, and qualifying defaulted-company securities, including as resolution applicants.
Special situation assets include eligible stressed loans, security receipts issued by a registered Asset Reconstruction Company, and securities of investee companies connected with stressed borrowings, security receipts, corporate insolvency resolution, or continuing disclosed payment defaults. Securities associated with corporate insolvency resolution or continuing defaults require a "D" or equivalent downgrade. A special situation fund invests in such assets in accordance with its investment objectives and may act as a resolution applicant under the Insolvency and Bankruptcy Code, 2016.
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