The Art of Vulture Investing Founded in 1807, John Wiley & Sons is the oldest independent publishing companyintheUnitedStates.WithofficesinNorthAmerica,Europe,Aus- tralia and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional andpersonalknowledgeandunderstanding. TheWileyFinanceseriescontainsbookswrittenspecificallyforfinance and investment professionals as well as sophisticated individual investors andtheirfinancialadvisors.Ourbooktopicscoverawiderange,fromport- folio management to e-commerce, risk management, financial engineering, valuationandfinancialinstrumentanalysisandmuchmore. For a list of available titles, please visit our Web site at www .WileyFinance.com. The Art of Vulture Investing Adventures in Distressed Securities Management GEORGE J. SCHULTZE with JANET LEWIS John Wiley & Sons, Inc. Copyright(cid:2)C 2012byGeorgeJ.Schultze,JanetLewis.Allrightsreserved. PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey. PublishedsimultaneouslyinCanada. Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedin anyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,or otherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyright Act,withouteitherthepriorwrittenpermissionofthePublisher,orauthorizationthrough paymentoftheappropriateper-copyfeetotheCopyrightClearanceCenter,Inc.,222 RosewoodDrive,Danvers,MA01923,(978)750-8400,fax(978)646-8600,orontheweb atwww.copyright.com.RequeststothePublisherforpermissionshouldbeaddressedtothe PermissionsDepartment,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030, (201)748-6011,fax(201)748-6008,oronlineathttp://www.wiley.com/go/permissions. LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheir besteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespectto theaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimplied warrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymaybecreated orextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceandstrategies containedhereinmaynotbesuitableforyoursituation.Youshouldconsultwitha professionalwhereappropriate.Neitherthepublishernorauthorshallbeliableforanylossof profitoranyothercommercialdamages,includingbutnotlimitedtospecial,incidental, consequential,orotherdamages. Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,please contactourCustomerCareDepartmentwithintheUnitedStatesat(800)762-2974,outside theUnitedStatesat(317)572-3993,orfax(317)572-4002. Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsin printmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts, visitourwebsiteatwww.wiley.com. LibraryofCongressCataloging-in-PublicationData: Schultze,GeorgeJ.,1970–author. Theartofvultureinvesting:adventuresindistressedsecurititesmanagement/GeorgeJ. SchulzewithJanetLewis pagescm.–(Wileyfinanceseries) Includesindex. ISBN978-0-470-87264-2(cloth);ISBN978-1-118-22099-3(ebk); ISBN978-1-118-25925-2(ebk);ISBN978-1-118-23473-0(ebk); 1.Investments. 2.Securities. I.Title. HG4521.S35782542012 332.63(cid:3)2–dc23 2012020187 PrintedintheUnitedStatesofAmerica 10 9 8 7 6 5 4 3 2 1 This book is dedicated to my wife, Kristen Schultze, my six children (Annabelle, Julia, Hugo, Walter, Eloise, and Blaise), my brothers (Axel, Dietrich and Peter), my sisters (Christina, Katia, Karen and Ingrid), and my father and mother.
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